In April, the asphalt market first suppressed and then rose, with an overall decline. According to monitoring data from Shengyi Society, the ex factory price of heavy-duty asphalt # 70 in Shandong region was 3677 yuan/ton on April 1st, and as of April 30th, the ex factory price in Shandong region was 3645 yuan/ton. On April 10th, it fell to 3423 yuan/ton, with a fluctuation of 6.9% during the month.

In the first half of the year, crude oil fell sharply, making it difficult for the cost side to support. The Shandong market continued to decline, and the asphalt market fell from a high level due to market competition and shipments. After the cost fell, refineries that reserved low-priced raw materials released an increase in monthly contract volume, and the market continued to bottom out.
In the second half of the year, the supply of asphalt in Shandong region was slightly tight. The demand in Shandong region was strong, and shipments were smooth. In addition, the inventory of manufacturers was low, and the bidding price was raised multiple times. Moreover, the asphalt futures market price continued to rise, and the overall trend was significantly stronger than that of crude oil. With the continuous rise of the asphalt market, mainstream brand prices have reached high levels, and some low-priced goods from the south have entered the northern market, slowing down the market growth.
From the perspective of Shengyi Society, the current asphalt fundamentals have certain support, and the demand side is expected to continue to release in May. From the cost side, it may fluctuate and weaken, and the supply side may be slightly tight during the peak demand season. We can pay attention to the starting prices of major manufacturers, and the asphalt market may show a strong operating trend in May.