Zhuochuang Information: Support from the cost side and supply side remains solid; the weekly average asphalt price continues to rise

This week, the national average price of asphalt was 4,619.57 yuan per ton, an increase of 132.29 yuan per ton or 2.95% compared to the previous week. Although road project construction has been affected by increased rainfall in parts of Jiangnan and South China, leading to weaker rigid demand for asphalt and a generally bearish demand side, from a cost perspective, the Iran-U.S. negotiations have stalled, with significant disagreements. This week, crude oil prices continued to fluctuate at high levels, providing relatively stable support for asphalt spot prices. Additionally, the overall operating rate of asphalt production facilities remains low, with some brands yet to release new contracts, and local asphalt markets continue to experience tight spot circulation. Therefore, the positive support from both the cost and supply sides persists, and the spot price of asphalt continued to rise this week. Looking ahead to next week, crude oil prices are expected to remain volatile at high levels, with continued strong support from costs for the asphalt spot market. Coupled with bottom support from the supply side, domestic asphalt prices are expected to continue a slight upward trend, with an estimated average price range of 4,600 to 4,700 yuan per ton. (Zhuochuang Information)