Report Summary 1) Report Industry Investment Rating No information provided. 2) Core View of the Report The asphalt market has certain support with low inventory. The fundamentals of asphalt are performing well. Supply growth is limited as some refineries stop producing asphalt or switch to producing residual oil, and the overall operating rate may decline again. On the demand side, it is gradually improving seasonally, although rainfall restricts project construction in some areas and limits the growth rate. The inventory accumulation rate is lower than the seasonal average, and the downstream has a good acceptance of low prices [1]. 3) Summary by Relevant Catalogs Market Analysis - On May 22, the closing price of the main asphalt futures contract BU2507 in the afternoon session was 3,539 yuan/ton, up 16 yuan/ton or 0.45% from the previous settlement price. The open interest was 187,690 lots, a net increase of 14,254 lots, and the trading volume was 233,597 lots, a net increase of 44,922 lots [1]. - The spot settlement prices of heavy - traffic asphalt from Zhuochuang Information are as follows: 3,700 - 4,086 yuan/ton in Northeast China, 3,450 - 3,800 yuan/ton in Shandong, 3,400 - 3,430 yuan/ton in South China, and 3,500 - 3,590 yuan/ton in East China. The spot price of asphalt in North China rose slightly yesterday, while prices in other regions remained stable [1]. Strategy - Unilateral: Range - bound. - Inter - delivery spread: Go long on the BU2507 - 2509 spread at low levels (positive spread trading). - Inter - commodity spread: None. - Spot - futures: None. - Options: None [2]

Report Summary 1) Report Industry Investment Rating No information provided. 2) Core Viewpoints - The asphalt market continues to face a situation of weak supply and demand. The current inventory is at a low level, and the recent inventory accumulation rate is lower than the seasonal average, resulting in limited short - term market pressure. However, with the improvement of some refineries' profits, the asphalt plant operating rate and production have marginally increased. Meanwhile, rainfall in South China in late May will affect the improvement of terminal demand, so there is also certain resistance above the asphalt market, and the industry's acceptance of high - priced resources is still limited [1]. - The strategy for asphalt investment is as follows: the unilateral trend is expected to be volatile; for the inter - period strategy, the previous long position of BU2506 - 2509 (positive spread position) can be taken profit at high prices; there are no strategies for cross - variety, spot - futures, and options [2]. 3) Summary by Related Catalogs Market Analysis - On May 19, the closing price of the main BU2506 contract of asphalt futures in the afternoon session was 3,502 yuan/ton, up 26 yuan/ton or 0.75% from the previous settlement price. The open interest was 73,925 lots, down 1,051 lots from the previous day, and the trading volume was 140,886 lots, up 21,991 lots from the previous day [1]. - The spot settlement prices of heavy - traffic asphalt from Zhuochuang Information are as follows: 3,700 - 4,086 yuan/ton in Northeast China, 3,450 - 3,600 yuan/ton in Shandong, 3,400 - 3,430 yuan/ton in South China, and 3,500 - 3,570 yuan/ton in East China. The spot prices of asphalt in North China and Shandong decreased yesterday, while those in other regions remained generally stable [1]. Strategy - Unilateral: Volatile [2]. - Inter - period: Take profit on the previous long position of BU2506 - 2509 (positive spread position) at high prices [2]. - Cross - variety: None [2]. - Spot - futures: None [2]. - Options: None [2].