The domestic asphalt market has entered a state of weak supply and demand, with a slight overall increase. According to monitoring data from Shengyi Society, on July 29th, the ex factory price of heavy-duty asphalt # 70 in Shandong Province was 3700 yuan/ton.

On the supply side, Shandong Jincheng, Sinochem Quanzhou, and Jinling Petrochemical intermittently switched to residual oil or stopped production during the week. However, the relief on the supply side did not significantly boost the price of asphalt, and domestic asphalt slightly increased with little overall change.
From a downstream perspective, the overall weak performance is the main source of bearish sentiment in the current asphalt market, with low transaction prices. The southern and southeastern coastal areas have been affected by typhoon weather, resulting in continuous rainy weather that seriously hinders road construction progress. The northern region also faces difficulties with rainy weather, while the central and southwestern regions continue to have high temperatures, with temperatures exceeding 35 degrees Celsius, affecting the quality of asphalt paving and resulting in overall sluggish terminal procurement.
Overall, Sinopec expects a continued decline in real estate and production compared to the same period, with demand determining future price trends. In the short term, the impact of rainy weather in the south is expected to be weak, and the same is true in North China. The price range in Shandong is between 3550-3720 yuan/ton.