Supply continues to hit new lows, but asphalt market prices remain high.

Domestic asphalt supply continues to drop, reaching new lows. With supply at historic lows, asphalt prices remain high and volatile. As of this week, the comprehensive capacity utilization rate of domestic asphalt manufacturers is 13.6%, hitting a new record low. In the short term, domestic asphalt prices are expected to remain high and volatile; in terms of supply, domestic asphalt production is expected to decrease, with a weekly average production of 219,000 tons, a decrease of 2.9% this week. Shandong Shengxing plans to switch to producing residual oil, leading to a decrease in refinery capacity utilization rate, expected to fall below 13%. On the demand side, demand in northern regions is relatively stable, with weather conditions supporting construction activities. In some southern regions, rainfall hinders demand, leading to slow market demand growth and no clear momentum to support prices. Looking at costs, international crude oil prices are fluctuating widely, resulting in profit losses and generally lower refinery operating rates.