The asphalt market experiences narrow fluctuations, while spot prices in many regions remain stable. The production schedule for August has decreased compared to the previous month, but it is important to pay attention to the production situation of refineries that have exceeded their production capacity. There is a demand for rush work in the northwest and northeast regions, while the demand is poor due to the impact of rainfall in the south. The cumulative year-on-year growth rate of sample refinery shipments has increased by 1 percentage point. The overall level of commercial inventory is relatively controllable, and BU has been under pressure due to the weak cost side in recent times, but there is still support for cracking.
From the perspective of Shengyi Society, in terms of the fundamentals of asphalt, the overall weak supply-demand situation may continue, with funding conflicts and weather conditions such as rainfall affecting the release of terminal demand. The supply side may remain stable, and the operating rate is at the median level in recent years. However, inventory is relatively low and there has been no accumulation signal. The short-term pressure on the market is not significant, and asphalt is operating steadily.