According to the Commodity Market Analysis System of the Business Society, the domestic asphalt market rebounded and sorted out in April. From April 1st to 27th, the average price of asphalt producers in Shandong region increased from 3713 yuan/ton to 3803 yuan/ton, an increase of 2.42%, and the price decreased by 5.78% year-on-year.

At the beginning of the month, due to the significant increase in crude oil, cost support was strengthened, driving up prices in various regions. With the influence of large-scale rainfall factors, market demand is slightly sluggish, and the upward trend of the asphalt market has stopped. In the first half of the month, due to the continuous rise in crude oil, cost support was strengthened, driving prices in various regions to rise slightly. The market just needs to recover, and some projects have started construction, but the overall situation is still limited. In the latter half of this month, supported by the high volatility of cost side crude oil, the main refineries raised their asphalt prices twice a week, driving up prices in various regions. With the slight decline in crude oil, asphalt prices in some regions have all weakened. The asphalt market is highly volatile.

On the cost side, since OPEC, an oil producing country, announced an additional significant production reduction on April 3, oil prices have continued to hover at high levels, boosted by positive supply side factors. Especially with the decline in inflation levels in the United States, the market is hoping that the Federal Reserve will relax its tight monetary policy, and the pressure on the demand side will ease. The WTI once exceeded $83 per barrel, reaching a high in the past five months. The domestic oil industry chain product market has been affected and the market has been relatively warm.

On the supply side, the conversion of Liaohe Petrochemical to residual oil, the planned maintenance of Hebei Xinhai, and intermittent production of some major refineries in East China have led to a decrease in capacity utilization. The comprehensive operating rate of the asphalt industry has decreased compared to the previous month, with a positive impact on the supply side.

On the demand side, recent rainfall and price drops in some regions have led to a slightly flat market demand; With the improvement of weather and the increase in project construction, market demand is slowly improving.

In the future market forecast, the international crude oil high level correction will drive the downward trend of asphalt futures, and the actual spot demand will be slightly flat. The mid week drop in price has intensified the wait-and-see atmosphere in the market. Business Society asphalt analysts predict that the short-term domestic asphalt market will be mainly volatile and organized.