International crude oil rose sharply, but the weather turned cold, the demand of asphalt terminal market weakened, and the upward pressure of domestic asphalt price was greater. According to the price monitoring data of the business agency, the asphalt price was reported at 2292 yuan / ton on November 27, 1.55% higher than that at the beginning of the week.
In November, the international oil price continued to push up, and has been rising for four consecutive weeks. On the one hand, the good news of the new crown vaccine has boosted the demand expectation; on the other hand, according to the news released from the market, OPEC + is expected to further maintain the current super scale production reduction, which is good for the supply expectation. WTI crude oil prices rose 7.76% this week, while Brent crude oil prices rose 6.20%.
On the whole, the weather turned cold, and the domestic asphalt market demand continued to weaken. There is rainfall in some areas of East China and central China, and the demand for terminal asphalt is weakened; the terminal projects in South China and southwest China are relatively stable, and the rigid demand is released steadily; in North China and Shandong, the weather warning results in periodic shutdown of the project, and the asphalt demand is gradually decreased compared with the previous period; the rigid demand for asphalt in the northeast and northwest regions is basically over, and the asphalt demand is weak.
Domestic asphalt supply is at a high level, with a cumulative output of 26.95 million tons from January to October, an increase of 13% over the same period of last year. In November, the planned output of asphalt is 3.365 million tons, with a year-on-year increase of 32.6%.
Business agency analysts believe that the national oil price has risen to a periodic high, and the epidemic situation has not improved. Therefore, the upward trend of oil price is full of resistance. As the weather turns cold, the terminal demand for asphalt is weakening, and the domestic asphalt price is expected to decline steadily.