1. Report Industry Investment Rating - No information provided in the report 2. Core Viewpoints of the Report - This week (Dec 4 - 10, 2025), the capacity utilization rate of 92 asphalt refineries in China was 29.9%, a 0.2% week - on - week decrease; the capacity utilization rate of 77 domestic heavy - traffic asphalt enterprises was 27.8%, a 0.1% week - on - week decrease. The decline was mainly due to the continuous shutdown of the large - scale unit of Hebei Xinhai and the low - to - medium - load production of major refineries in East China, despite the resumption of asphalt production at Guangzhou Petrochemical and Qilu Petrochemical and the stable production after the output increase at Karamay Petrochemical and Liaohe Petrochemical [4]. - From Dec 3 - 9, 2025, the total shipment volume of 54 domestic asphalt enterprises was 384,000 tons, a 3.8% week - on - week decrease. In North China, the overall supply decreased, and refineries mainly controlled the volume to deliver previous contracts, leading to a decrease in shipment volume. In Northeast and Northwest China, major refineries increased production, driving up the shipment volume [4]. - Crude oil weakened this week, but the escalating situation in Venezuela and the high - price winter storage trial in Hebei (3,000 yuan/ton) pushed BU to strengthen slightly against crude oil in the middle of the week. The average weekly theoretical profit of domestic asphalt processing was - 453 yuan/ton, a 25 - yuan/ton week - on - week increase. The spot price of the asphalt market fluctuated between 3,081 - 3,086 yuan/ton, with a slowdown in the decline of the average spot price and a narrowing of the price fluctuation range [4]. 3. Summary by Directory 3.1 Overview - The capacity utilization rate of asphalt refineries decreased due to factors such as the shutdown of some large - scale units and low - to - medium - load production of major refineries. The shipment volume of asphalt enterprises decreased overall, with regional differences. The asphalt market showed a slight strengthening against the backdrop of weak crude oil due to geopolitical and winter - storage factors [4]. 3.2 Price & Spread - **Cost Structure**: The cost of asphalt is affected by factors such as Brent, WTI, imported diluted asphalt, and Ma Rui crude oil. There are also raw material supply options, including substitutes like SC, and different crude oils have different asphalt yields. Import and export policies, exchange rates, and freight also impact the cost [7]. - **Futures - Disk Price and Trading Volume/Open Interest**: There are data on the prices and trading volume/open interest of Brent, WTI, and SC, presented in a graphical form [11]. - **Spot - Heavy - Traffic Asphalt and Ma Rui Crude Oil**: Data on the prices of domestic heavy - traffic asphalt in different regions and the production profit margin of asphalt in Shandong are presented graphically [12]. - **Spread - Basis and Calendar Spread**: There are data on the basis in regions such as North China, Shandong, and the Yangtze River Delta, as well as calendar spreads, presented graphically [14][15][16]. 3.3 Fundamental Data 3.3.1 Demand - **Consumption Distribution**: The demand for asphalt comes from the road market (including highway construction and maintenance), waterproofing market, ship - fuel market, coking market, and export market. Seasonal factors also have an impact, but the impact of some markets like the ship - fuel and coking markets is limited [21]. - **Weekly Data**: From Dec 3 - 9, 2025, the total shipment volume of 54 domestic asphalt enterprises was 384,000 tons, a 3.8% week - on - week decrease. The capacity utilization rate of 69 domestic sample modified - asphalt enterprises was 9.0%, a 0.2% week - on - week decrease and a 0.5% year - on - year increase. The cold weather in the north reduced the production enthusiasm of modified - asphalt enterprises, while the rush - work demand in the south increased production, resulting in a slight decrease in the overall supply of modified asphalt [25]. 3.3.2 Supply - **Supply Pattern**: The supply of asphalt comes from domestic refineries (including major and local refineries) and imports. Refineries are divided by region and attribute. Key supply indicators include inventory, production start - up, production profit, maintenance plans, and monthly production schedules [27]. - **Production, Maintenance, and Raw Materials**: From Dec 2 - 8, 2025, the weekly total asphalt production in China was 514,000 tons, a 0.9 - million - ton (1.8%) week - on - week increase and a 0.6 - million - ton (1.2%) year - on - year decrease. The cumulative production from January to December was 29.531 million tons, a 7.9% year - on - year increase. As of Dec 11, 2025, the total inventory of 54 asphalt sample refinery warehouses was 618,000 tons, a 2.5% decrease from Dec 8. The total inventory of 104 asphalt social warehouses was 1.036 million tons, remaining stable from Dec 8. There were regional differences in inventory changes [30]. - **Start - up**: There are data on the weekly start - up rates of 77 major asphalt refineries in different regions, presented graphically [33][34][35]. - **Inventory**: There are data on the weekly inventory rates of asphalt refineries and the asphalt market in different regions, presented graphically [42].

Report Summary 1) Report Industry Investment Rating No industry investment rating is provided in the report. 2) Core Viewpoints - The short - term trend of asphalt is expected to remain weak due to the weak operation of crude oil, the fading of the peak season for asphalt fundamentals, and the negative sentiment driven by price cuts in Shandong [4]. - The recommended strategies are: 1) The single - side trend is weak; 2) No specific suggestion for inter - period trading; 3) Hold a short position in BU and a long position in SC [4]. 3) Summaries by Directory Overview - Supply: From October 30 to November 5, 2025, the capacity utilization rate of 77 domestic heavy - traffic asphalt enterprises was 29.7%, a 1.8% decrease from the previous period. This was mainly due to production cuts at some refineries and intermittent shutdowns at others [4]. - Demand: The total shipment volume of 54 domestic asphalt enterprises was 445,000 tons, a 5.1% decrease from the previous period. Shandong was the only region with an increase in shipments, while the most significant decrease was in East China [4]. - Valuation: The average weekly theoretical profit of domestic asphalt processing was - 593.2 yuan/ton, a decrease of 58.8 yuan/ton from the previous period. The average weekly price of domestic asphalt was 3,352 yuan/ton, a decrease of 82 yuan/ton from the previous period. Six regions saw price drops, with Shandong having the highest decline of 4.3% [4]. Price & Spread - Cost structure: The cost of asphalt is affected by factors such as Brent, WTI, imported diluted asphalt, and different types of crude oils. Different raw materials have different asphalt yields, for example, the yield of Venezuelan Merey crude oil is 55% - 60% [7]. - Price data: There are multiple price - related charts, including futures - market price and trading volume, and spot - market prices of heavy - traffic asphalt and Merey crude oil, as well as various price spreads and basis data [11][12]. Fundamental Data - Demand: - Consumption distribution: The demand for asphalt comes from road construction, road maintenance, waterproofing, shipping fuel, coking, and exports. Road construction includes different types of roads, and various factors such as policies, funds, and seasonal factors affect demand [18]. - Shipment volume: From October 29 to November 4, 2025, the total shipment volume of 54 domestic asphalt enterprises was 445,000 tons, a 5.1% decrease from the previous period. Shandong was the only region with an increase, and East China had the most significant decrease [22]. - Capacity utilization: The capacity utilization rate of 69 domestic modified asphalt enterprises was 11.9%, a 3.1% decrease from the previous period and a 1.3% decrease year - on - year [22]. - Supply: - Supply pattern: Domestic asphalt supply comes from domestic refineries and imports. Refineries can be classified by attribute (state - owned or private) and region. Key supply indicators include inventory, production profit, maintenance plans, and monthly production schedules [23]. - Production, maintenance, and raw materials: As of November 6, 2025, the total inventory of 54 domestic asphalt sample factories was 685,000 tons, a 2.4% increase from November 3. The total inventory of 104 domestic asphalt social warehouses was 1,209,000 tons, a 3.9% decrease from November 3 [26]. -开工率: There are charts showing the weekly开工率 of 77 major asphalt refineries in different regions, including the overall开工率 and those in Shandong, the Yangtze River Delta, etc. [28][30]. - Inventory: There are charts showing the weekly inventory rates of asphalt refineries and the asphalt market in different regions and overall [37].