Zhuochuang Information: The bearish impact on the demand side is evident, and the weekly average asphalt price continues to fall

This week’s national average asphalt price is 4,409 yuan/ton, down 80.86 yuan/ton or 1.8% compared to the previous week. First, from the cost side, the Strait of Hormuz has reopened and then closed again, coupled with the cancellation of the US and a Middle Eastern country’s second round of talks, causing wide fluctuations in oil prices. Although there are some positive supports on the cost side, the support is relatively limited. Second, from the supply and demand perspective, despite the continuous decline in the operating load rate of asphalt plants, the overall downstream construction willingness remains weak because asphalt spot prices are still high. Market sentiment remains cautious, and rigid demand for asphalt has not shown obvious improvement. The negative impact on demand is clear, exerting pressure that caused the asphalt spot price to continue falling this week. Looking ahead to next week, both crude oil costs and market supply and demand lack clear positive signals to boost the market. It is expected that domestic asphalt prices may continue to be under pressure and decline further, with the average price range forecasted between 4,300 and 4,400 yuan/ton. (Zhuochuang Information)