The asphalt market first suppressed and then rose in May. According to monitoring data from Shengyi Society, the ex factory price of heavy-duty asphalt # 70 in Shandong Province was 3647 yuan/ton on May 1st, and as of May 30th, the ex factory price in Shandong Province was 3627 yuan/ton.

During the May Day holiday, crude oil prices plummeted, making it difficult for the cost side to support. The market experienced a significant decline in the first half of the year, and the asphalt market fell from a high level due to market competition and shipments. And there is insufficient improvement on the consumer side, especially with the increase in rainy weather, which will limit project construction and terminal demand.
In the latter half of the year, the supply of asphalt in Shandong region was slightly tight, with strong demand and smooth shipments. In addition, the inventory of manufacturers was low, and bidding was raised. The price of asphalt futures market rose, 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 a high level, and at the end of the month, the price of Jingbo # 70 trade factory was 3630 yuan/ton.
From the perspective of Shengyi Society, the current asphalt fundamentals have certain support, and the demand side is expected to continue to release in June. From the cost side, there may be fluctuations in operation, and the supply side may be slightly tight during the peak demand season. We can pay attention to the starting prices of major manufacturers each time. The asphalt market may show a strong operating trend in June.