US Asphalt Market

  • August 2013
  • -
  • Freedonia
  • -
  • 345 pages

US demand to rise 3.7% annually through 2017

Demand for asphalt in the US is forecast to increase 3.7 percent annually to 27.9 million tons in 2017. This is equivalent to 154 million barrels of primary asphalt, the vast majority of which is refined petroleum asphalt. Demand for asphalt is expected to advance from its low 2012 base, spurred by growth in highway and road construction spending and building construction expenditures, the two largest markets for asphalt. However, asphalt demand in 2017 will not reach the level seen in 2007. Rising use of recycled asphalt pavement (RAP) and increasing interest in rehabilitating and repairing older or worn surfaces -- instead of building new roads -- will serve as a check on asphalt demand advances.

Paving asphalt to remain dominant segment

Paving products accounted for 71 percent of asphalt consumption in 2012, and will remain the leading application for asphalt going forward, increasing 3.9 percent per annum to 20.2 million tons in 2017. The passage of the Moving Ahead for Progress in the 21st Century Act (MAP-21), which guarantees funding for highway and road construction projects through October 2014, provides an immediate boost to demand for paving materials. However, long-term gains will be checked by the efforts of government agencies to maintain existing road networks, rather than build new ones. It takes less asphalt paving product to repair roads than to construct them.

Paving products demand will also be suppressed by increasing use of in-place recycling road construction methods, such as those that use RAP. These methods are favored by state transportation agencies because they are less costly; reusing old pavement to make new road surfaces reduces demand for asphalt cement, the most frequently specified paving material. Demand for asphalt emulsions will benefit from rising use of RAP, as emulsions can be blended with old pavements to rejuvenate worn highway surfaces and repair moderately damaged highways.

Residential market to pace asphalt roofing segment

Demand for asphalt used to make roofing and other products is forecast to rise 3.0 percent annually to 7.7 million tons in 2017. Advances will be spurred by the rebound in building construction expenditures.

The residential market will see the fastest growth, as strong gains in single-family housing completions will boost demand for asphalt shingles. In the nonresidential segment, rising construction spending will support demand for low-slope roofing products, such as modified bitumen membranes, roll roofing, and mopping asphalts.

Study coverage

This upcoming Freedonia industry study, Asphalt, is priced at $5300. It presents historical demand data for 2002, 2007 and 2012, and forecasts for 2017 and 2022 by product, market and US region.

The study also considers market environment factors, evaluates company market share, and profiles industry players.

Table Of Contents

TABLE OF CONTENTS

INTRODUCTION xi

I. EXECUTIVE SUMMARY 1

II. MARKET ENVIRONMENT 4

General 4
Macroeconomic Environment 4
Demographic Trends 8
Construction Expenditures 12
Building Construction 15
Residential Buildings 17
Housing Completions 19
Housing Stock 24
Improvements and Repairs 28
Nonresidential Buildings 29
New 30
Improvements and Repairs 32
Nonbuilding Construction 34
Highway Mileage 35
Public Highway Spending 36
Petroleum Industry Trends 39
Primary Asphalt Market Trends 41
Primary Asphalt Market Seasonality 45
Asphalt Products Pricing Trends 46
Competitive Materials 50
Roofing 50
Paving 52
Foreign Trade 54
Primary Asphalt 54
Asphalt Products 56

III. ASPHALT OVERVIEW 58

General 58
Primary Asphalt 58
Paving Methods 60
Hot-Mix Asphalt 60
Warm-Mix Asphalt 62
Hot- and Cold-Patch Materials 64
Other Asphalt Paving Methods 65
Bituminous Surface Treatment 65
Thin Membrane Surface Treatment 66
Granular Pavement 66
Composite Pavements 66
Open Grade Friction Courses 67
Stone-Matrix Asphalt 68
Low Energy Asphalt 69
Paving Asphalt Product Developments 69
Superpave 69
Perpetual Pavements 70
Asphalt Modifiers 71
Asphalt Roofing Products 73
Environmental Issues 74
Recycling 75
Recycled Asphalt Pavement 75
Crumb Rubber 77
Asphalt Shingles 78
Emissions-Related Issues 79
Government Road Construction Activity 82
SAFETEA-LU and MAP-21 82
Highway Trust Fund 83

IV. PRIMARY ASPHALT SUPPLY and DEMAND 85

General 85
Supply and Demand 88
Primary Asphalt Types 91
Primary Asphalt Demand by Use 92
Paving Asphalts 95
Asphalt Cement 98
Asphalt Emulsions 99
Cutback Asphalt 99
Other Paving Asphalts 100
Roofing Asphalts 100
Other Asphalts 102

V. ASPHALT PRODUCTS 104

General 104
Demand Drivers 105
Paving Products 108
Asphalt Cement 112
Asphalt Emulsions 115
Cutback Asphalt 118
Other Asphalt Paving Products 120
Roofing Products 123
Asphalt Shingles 125
Modified Bitumen Roofing Membranes 128
Mopping Asphalts 132
Standard Asphaltic Roofing Felts 134
Other Asphalt Roofing Products 137
Other Asphalt Products 139
Construction Products 140
Nonconstruction Products 143

VI. MARKETS 146

General 146
Construction 147
Residential Buildings 151
New 154
Improvement and Repair 157
Nonresidential Buildings 160
New 163
Improvement and Repair 165
Nonbuilding 168
New 170
Improvement and Repair 172
Nonconstruction Markets 175

VII. REGIONS 177

General 177
Regional Demographic and Economic Trends 178
Population Patterns 179
Economic Outlook 182
Regional Construction 185
Housing Trends 188
Primary Asphalt Capacity by Region 191
Regional Asphalt Demand 194
Northeast 197
New England 199
Middle Atlantic 201
Midwest 203
East North Central 207
West North Central 209
South 211
South Atlantic 214
East South Central 217
West South Central 218
West 221
Mountain 224
Pacific 226

VIII. INDUSTRY STRUCTURE 230

General 230
Industry Concentration 231
Primary Asphalt Market Share 232
Asphalt Paving Products Market Share 238
Asphalt Roofing Products Market Share 242
Manufacturing 246
Marketing and Distribution 248
Mergers and Acquisitions 252
Cooperative Agreements 255
Company Profiles 257
Alon USA Energy Incorporated 258
American Gilsonite Company 260
APAC Atlantic, see CRH
ArrMaz Custom Chemicals Incorporated 262
Atlas Roofing, see Hood Companies
Barrett Paving Materials, see Bouygues
BASF SE 265
Berkshire Hathaway Incorporated 267
Bouygues SA 270
BP plc 273
Bridgestone Corporation 275
Building Materials Corporation of America 277
Burdick Materials, see CRH
Calumet Specialty Products Partners LP 280
CertainTeed, see Saint-Gobain
CHS Incorporated 281
Colas, see Bouygues
Colaska, see Bouygues
CPM Development, see CRH
Crafco, see Ergon
CRH plc 283
DAP Products, see RPM International
Deer Park Refinery, see Royal Dutch Shell
Delek US Holdings Incorporated 290
Delta Companies, see Bouygues
Dolomite Products, see CRH
DuPont (EI) de Nemours 291
Ergon Incorporated 292
Exxon Mobil Corporation 296
Firestone Building Products, see Bridgestone
Flint Hills Resources, see Koch Industries
Fortifiber Corporation 297
GAF Materials, see Building Materials Corporation of
America
HeidelbergCement AG 299
Henry Company 301
HollyFrontier Corporation 304
Hood Companies 305
Imperial Oil, see Exxon Mobil
Johns Manville, see Berkshire Hathaway
Koch Industries Incorporated 308
Lafarge SA 309
Lehigh Hanson, see HeidelbergCement
Lion Oil, see Delek US Holdings
Marathon Petroleum Corporation 311
Michigan Paving and Materials, see CRH
Montana Refining, see Calumet Specialty Products
Partners
Murphy Oil Corporation 313
NuStar Energy LP 314
Oldcastle Materials, see CRH
Owens Corning 315
Pennsy Supply, see CRH
Phillips 66 319
Pike Industries, see CRH
PJ Keating, see CRH
Reeves Construction, see Bouygues
Republic Powdered Metals, see RPM International
Road Science, see ArrMaz Custom Chemicals
Royal Dutch Shell plc 321
RPM International Incorporated 323
Saint-Gobain 327
Shelly, see CRH
Sinclair Oil Corporation 331
Sloan Construction, see Bouygues
Slusser Brothers, see CRH
Staker Parson Companies, see CRH
TAMKO Building Products Incorporated 332
Tilcon Connecticut, see CRH
Trap Rock Industries, see CRH
Tremco, see RPM International
Tricor Refining, see Ergon
Trumbull Asphalt, see Owens Corning
UNIQUE Paving Materials Corporation 336
United Refining Company 337
Valero Energy Corporation 338
Vulcan Materials Company 340
Western Emulsions Incorporated 341
WRB Refining, see Phillips 66
Wright Asphalt Products, see Alon USA Energy
Ziegler Chemical and Mineral Corporation 342
Additional Companies Mentioned in Study 344



LIST OF TABLES

SECTION I -- EXECUTIVE SUMMARY

Summary Table 3

SECTION II -- MARKET ENVIRONMENT

1 Macroeconomic Indicators 8
2 Population and Households 12
3 Construction Expenditures 14
4 Building Construction Expenditures 16
5 Residential Building Construction Expenditures 19
6 New Housing Indicators 24
7 Housing Stock by Type 27
8 Residential Improvement and Repair Expenditures 29
9 Nonresidential Building Construction Expenditures 32
10 Nonresidential Building Improvement and Repair Expenditures 33
11 Nonbuilding Construction Expenditures 35
12 US Highway Mileage 36
13 Public Highway Spending 38
14 Refined Petroleum Products Consumption and Production 41
15 Primary Asphalt Market, 2002-2012 44
16 Asphalt Products Pricing 50
17 Asphalt Products Foreign Trade 57

SECTION IV -- PRIMARY ASPHALT SUPPLY and DEMAND

1 Primary Asphalt Supply and Demand 91
2 Demand for Primary Asphalt by Use 94
3 Paving Demand for Primary Asphalt 98
4 Roofing Demand for Primary Asphalt 102
5 Demand for Primary Asphalt in Other Uses 103

SECTION V -- ASPHALT PRODUCTS

1 Asphalt Products Demand 105
2 Use of Asphalt in Paving Products 111
3 Asphalt Cement -- Asphalt Content 115
4 Asphalt Emulsions -- Asphalt Content 118
5 Cutback Asphalt -- Asphalt Content 120
6 Other Asphalt Paving Products -- Asphalt Content 122
7 Use of Asphalt in Roofing Products 124
8 Asphalt Shingles -- Asphalt Content 128
9 Modified Bitumen Roofing Membranes -- Asphalt Content 131
10 Mopping Asphalt Demand 134
11 Standard Asphalt Roofing Felts -- Asphalt Content 137
12 Other Asphalt Roofing Products -- Asphalt Content 139
13 Asphalt Content in Other Products 140

SECTION VI -- MARKETS

1 Asphalt Demand by Market 147
2 Construction Demand for Asphalt by Market and Application 150
3 Residential Building Market for Asphalt
by Product and Application 154
4 New Residential Building Market for Asphalt 156
5 Residential Improvement and Repair Asphalt Demand 160
6 Nonresidential Building Market for Asphalt
by Product and Application 163
7 New Nonresidential Building Market for Asphalt 165
8 Nonresidential Building Improvement and Repair Market
for Asphalt 167
9 Nonbuilding Construction Market for Asphalt
by Product and Application 170
10 New Nonbuilding Construction Market for Asphalt 172
11 Nonbuilding Improvement and Repair Market for Asphalt 175
12 Asphalt Demand in Nonconstruction Markets 176

SECTION VII -- REGIONS

1 Population by Region 182
2 Gross Domestic Product by Region 185
3 Construction Expenditures by Region 187
4 Regional Housing Indicators 190
5 US Primary Asphalt Capacity by Region, 2012 193
6 Asphalt Demand by Region and Application 196
7 Northeast Asphalt Demand by Subregion and Application 199
8 New England Asphalt Demand 201
9 Middle Atlantic Asphalt Demand 203
10 Midwest Asphalt Demand by Subregion and Application 207
11 East North Central Asphalt Demand 209
12 West North Central Asphalt Demand 211
13 South Asphalt Demand by Subregion and Application 214
14 South Atlantic Asphalt Demand 216
15 East South Central Asphalt Demand 218
16 West South Central Asphalt Demand 220
17 West Asphalt Demand by Subregion and Application 223
18 Mountain Asphalt Demand 226
19 Pacific Asphalt Demand 229

SECTION VIII -- INDUSTRY STRUCTURE

1 US Primary Asphalt Capacity by Producer, 2012 234
2 Asphalt Paving Products Market Leaders, 2012 241
3 Asphalt Roofing Products Market Leaders, 2012 245
4 Selected Acquisitions and Divestitures 254
5 Selected Cooperative Agreements 256



LIST OF CHARTS

SECTION II -- MARKET ENVIRONMENT

1 Year of Construction of Housing Stock, 2012 27
2 Primary Asphalt Market, 2003-2012 45
3 Asphalt Market Seasonality 46

SECTION IV -- PRIMARY ASPHALT SUPPLY and DEMAND

1 Primary Asphalt Flow Chart 87
2 Primary Asphalt Demand by Use, 2012 95

SECTION V -- ASPHALT PRODUCTS

1 Use of Asphalt in Paving Products, 2012 112
2 Use of Asphalt in Roofing Products, 2012 125

SECTION VI -- MARKETS

1 Asphalt Demand in Construction Markets, 2012 151

SECTION VII -- REGIONS

1 US Primary Asphalt Capacity by Region, 2012 194
2 Asphalt Demand by Region, 2012 197

SECTION VIII -- INDUSTRY STRUCTURE

1 Primary Asphalt Capacity by Producer, 2012 235
2 Asphalt Paving Products Market Share, 2012 242
3 Asphalt Roofing Products Market Share, 2012 246

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