1. Report Industry Investment Rating - No information provided in the report. 2. Core Viewpoints - This week (Dec 11 - 17, 2025), the capacity utilization rate of 92 asphalt refineries in China was 29.2%, a 0.7% week - on - week decrease. The capacity utilization rate of 77 domestic heavy - traffic asphalt enterprises was 27.6%, a 0.2% week - on - week decrease. Although some refineries in East and South China resumed or increased production, a refinery in Shandong intermittently switched to producing residual oil, leading to the decline [4]. - From Dec 10 - 16, 2025, the total shipment volume of 54 domestic asphalt enterprises was 350,000 tons, an 8.9% week - on - week decrease. Shipments in East and Shandong China decreased significantly. In Shandong, refineries stopped asphalt production, and snow and rain affected demand. In East China, major refineries intermittently reduced production, and high prices curbed purchasing enthusiasm [4]. - Crude oil rebounded significantly this week, but the situation in Venezuela heated up. Traders were worried about geopolitical risks and reduced提货, leading to significant inventory accumulation and a sharp decline in the discount. Asphalt deviated from the strong oil price and remained low [4]. - The average weekly theoretical profit of domestic asphalt processing was - 355 yuan/ton, a 98 - yuan/ton week - on - week increase. The spot price of the asphalt market fluctuated between 3081 - 3086 yuan/ton, with a slowdown in the decline and a narrowing of the price fluctuation range. Five regions saw price drops of 0.9% - 5.4%, with the highest in the Northwest at 5.4%. Only one region, Northeast China, saw a price increase [4]. - Strategies: 1) Unilateral: -; 2) Inter - period: -; 3) Inter - variety: The BU - SC crack spread remained low [4]. 3. Summary by Directory 3.1 Overview - The report analyzes the supply, demand, price, valuation, and strategies of the asphalt market in the week of Dec 11 - 17, 2025, and points out that asphalt deviated from the strong oil price and remained low due to the situation in Venezuela [4]. 3.2 Price & Spread - **Cost Structure**: The cost of asphalt is affected by factors such as Brent, WTI, imported diluted asphalt, and Ma瑞 crude oil. Some raw materials have advantages like not requiring crude oil quotas and being exempt from consumption tax. Different crude oils have different asphalt yields, e.g., Ma瑞 crude oil has a yield of 55% - 60% [7]. - **Price and Spread Charts**: There are charts showing the relationship between futures and spot prices, such as the relationship between Brent, WTI, SC, and asphalt prices, and the differences between different regions' asphalt prices and production margins [11][12]. 3.3 Fundamental Data 3.3.1 Demand - **Consumption Distribution**: The demand for asphalt mainly comes from the road market (including highway construction and maintenance), the waterproof market, the ship - fuel market, the coking market, and the export market. Seasonal factors also have an impact, although the impact of some markets is limited [20]. - **Downstream Shipment**: From Dec 10 - 16, 2025, the total shipment volume of 54 domestic asphalt enterprises was 350,000 tons, an 8.9% week - on - week decrease. The capacity utilization rate of 69 domestic modified asphalt enterprises was 7.7%, a 1.3% week - on - week decrease and a 0.6% year - on - year increase [25]. 3.3.2 Supply - **Supply Pattern**: The supply of asphalt comes from domestic refineries (including state - owned and local refineries) and imports (from countries like South Korea and Singapore). The main supply indicators include inventory, production start - up, production profit, maintenance plans, and monthly production schedules [26]. - **Output, Maintenance, and Raw Materials**: In January 2026, the planned production volume of domestic asphalt refineries was 1.058 million tons, a 12.4% month - on - month decrease and a 21.5% year - on - year decrease. As of Dec 18, 2025, the inventory of 54 asphalt sample refineries was 635,000 tons, a 1.6% increase compared to Dec 15. The inventory of 104 social asphalt warehouses was 1.023 million tons, a 0.6% decrease compared to Dec 15 [29]. - **Start - up**: There are charts showing the weekly start - up rates of 77 major asphalt refineries in different regions over the years [32][33][35]. - **Inventory**: There are charts showing the weekly inventory rates of asphalt refineries and the asphalt market in different regions over the years [41].

Report Summary 1. Investment Rating The report does not mention the industry investment rating. 2. Core Viewpoints - Considering the current mediocre fundamental performance, the short - term valuation of asphalt is expected to have no outstanding performance and may remain neutral to weak. Attention should be paid to the possible unilateral crude oil market brought by tariff policies and the geopolitical situation in the Middle East [5]. - The shipment of asphalt is slow, and the valuation continues to be weak. The supply has decreased, and the downstream demands asphalt at low prices. The brand competition in the north - south market has intensified, and the prices in some provinces are under pressure [4]. 3. Summary by Directory 3.1 Overview - **Supply**: The capacity utilization rate of 77 domestic heavy - traffic asphalt enterprises is 28.8%, a 4.0% decrease from the previous week. The domestic asphalt processing profit has slightly increased, with a weekly average of - 524 yuan/ton, a 10 - yuan increase from the previous week. The supply in Shandong and East China has decreased, but there is an expected slight increase in Shandong next week [4]. - **Demand**: Downstream customers purchase low - priced asphalt as needed. The brand competition in the north - south market has intensified, and prices in some provinces are under pressure. Rain in Shandong has hindered terminal demand, while some terminal projects in East China are under concentrated construction, increasing the demand for 70 and modified asphalt [4]. - **Valuation**: During the week, BU fluctuated with crude oil. The weekly average price of domestic asphalt was 3784 yuan/ton, a 3 - yuan increase from the previous period. The price fluctuation range was 3764 - 3794 yuan/ton, with an expanded range. Four regions saw price drops, two regions had price increases, and one region remained stable [5]. - **Strategy**: For cross - period trading, consider partial profit - taking on reverse spreads; for cross - variety trading, consider partial profit - taking on short crack spreads [5]. 3.2 Price & Spread - **Cost Structure**: The cost of asphalt is related to various crude oils such as Brent, WTI, imported diluted asphalt, and Ma Rui crude oil. Different crude oils have different advantages in terms of raw material supply, such as no need for crude oil quotas and exemption from consumption tax [8]. - **Futures and Spot**: The report presents data on futures prices, trading volume, and positions, as well as spot prices of heavy - traffic asphalt and Ma Rui crude oil, and price differences between regions [12][13]. - **Basis and Calendar Spread**: The report shows the basis and calendar spread data of asphalt over the years [17][19]. 3.3 Fundamental Data - **Demand** - **Consumption Distribution**: The demand for asphalt is mainly in the road market (including highway construction and maintenance), waterproofing market, ship - fuel market, coking market, and export market. The road market is affected by policies, project progress, and investment [23]. - **Downstream Shipment**: From July 16 - 22, 2025, the total shipment of 54 domestic asphalt enterprises was 41.5 tons, a 0.2% increase from the previous week. The capacity utilization rate of 69 domestic modified asphalt enterprises was 14.5%, a 0.1% decrease from the previous week and a 2.5% increase from the same period last year [28]. - **Supply** - **Supply Pattern**: The supply of asphalt comes from domestic refineries and imports. Domestic refineries include state - owned and local refineries, and imports mainly come from South Korea and Singapore. Key supply indicators include inventory, production, profit, maintenance plans, and monthly production schedules [29]. - **Production, Maintenance, and Raw Materials**: From July 18 - 24, 2025, the weekly total production of domestic asphalt was 51.7 tons, a 1.5% decrease from the previous week and a 12.1% increase from the same period last year. As of July 24, 2025, the inventory of 54 asphalt sample refineries was 72.3 tons, a 4.0% decrease from July 21, and the inventory of 104 social warehouses was 185.7 tons, a 0.1% decrease from July 21 [32]. - **Start - up**: The report shows the weekly start - up rates of asphalt refineries in different regions over the years [35]. - **Inventory**: The report presents the inventory rates of asphalt refineries and the total asphalt market inventory rates in different regions over the years [45].