playcrash| Weak supply and demand of asphalt: Focus on infrastructure and the impact of crude oil sanctions

News summary

The operating rate at the asphalt supply side rebounded to 27playcrash.0%playcrashHowever, market demand is still weak. US reopens sanctions on VenezuelaplaycrashInvestors are advised to keep a wait-and-see view on the asphalt market.

Newsletter text

Refineries maintain low operating conditions under weak supply and demand in the asphalt market ======================================== The asphalt operating rate increased by 3 month-on-monthplaycrash.4 percentage points to 27.0%, but still at a record low. Under the pressure of profit losses, refinery asphalt will continue to maintain a low operating rate. In terms of downstream operating rates, it fell slightly last week and was still low compared with the same period of previous years, while road asphalt operating rates only rebounded slightly, basically the same as in mid-December last year. The asphalt inventory ratio increased slightly after May Day, but it is still at a historical low. The issuance of special treasury bonds at high levels of infrastructure investment alleviates local fiscal pressure ========================= At present, infrastructure investment is still at a high level, and the market remains concerned about the future driving role of asphalt infrastructure. U.S. sanctions on Venezuela on oil and gas asphalt price fluctuations intensify ================= On May 10, the United States allowed some oil companies, including Halliburton, Schlumberger, Baker Hughes, and Weatherford, to extend their general licenses to carry out basic business in Venezuela until November 15, 2024. The premium on Marui crude oil has increased, and asphalt prices currently fluctuate with crude oil. The asphalt market has a strong wait-and-see attitude. Investors are advised to operate cautiously.================== Investors are advised to operate cautiously and pay close attention to relevant developments in the asphalt market.