Newsletter summary
Asphalt supply and demand is weak, inventory is low, infrastructure investment is high; the United States oil and gas sanctions on Venezuela affect the cost of asphalt, it is suggested to wait and see.
Text of news flash
The supply and demand of asphalt is weak, the market wait-and-see mood is heavy, and the asphalt market is showing weakness in both supply and demand in the near future.Nodepositpokerbonus2022At the same time, under the influence of factors such as US sanctions on Venezuela, the wait-and-see mood of the market is gradually heating up.
First of all, from the supply side, although the asphalt operating rate has rebounded from the previous month to 27.Nodepositpokerbonus2022.0%, but it is still at a low level compared with the same period in previous years. This phenomenon reflects that the refinery will remain at a low operating level in the context of profit and loss.
From the perspective of downstream demand, the operating rate of road asphalt has rebounded recently, but it is still relatively low compared with the same period last year. In addition, the asphalt inventory ratio rebounded slightly after May Day, but it is still at an all-time low.
It is worth noting that the issuance of ultra-long-term special treasury bonds mentioned in the government work report will help to ease the financial pressure on local governments. Coupled with the fact that infrastructure investment remains high, the market takes a wait-and-see attitude as to whether asphalt infrastructure can be effectively pulled in the future.
In addition, the oil and gas sanctions policy of the United States against Venezuela has also had an impact on the asphalt market. Under the circumstances that the United States allows some oil companies to extend their licenses to do business in Venezuela until 2024, the discount on Marie crude oil has been increased.
Generally speaking, under the pressure of supply and demand, shipments continue to decline in the asphalt market. Market participants are cautious about the future performance of asphalt and advise investors to maintain a wait-and-see situation for the time being.