INDUSTRY NEWS FLASH
Asphalt Industry News: August 23 – September 3, 2010
Monday, August 23, 2010: WTI: $72.74
Please check out the new APAO Members only Newsletter.
Domestic Oil News
Over the last week crude has seen profit taking as US equities continued to decline. September delivered contract ended down 97 cents at $73.46. In Europe economic activity is gaining momentum. However, it is not at the pace previously thought just a month ago and contributed to the negative sentiment. This combined with recent negative economic reports out of the US we may see further declines in oil.
In the Monday, August 16, 2010 Wall Street Journal there is an article on the recent correlation between crude oil and the stock market. According to the WSJ, crude oil is more influenced by the stock market than by supply and demand or inventory levels. Stocks should be driven by corporate earnings and crude oil should be driven by supply and demand. Many analysts are trying to determine the correlation. One simple reason is rising stocks are a sign of growing demand for energy. Check out the article at www.wsj.com.
Asphalt: Across the Country
Asphalt demand is down in most parts of New England and the East Coast. Prices are steady and have been for several weeks. Asphalt supply is ample.
Some Mid Continent and Mid West markets were affected by the Enbridge pipeline rupture and oil spill a few weeks ago. Alternate crude sources have helped refineries continue run at high rates. Prices are steady and there is plenty of supply.
Some areas of the Southern and Gulf Coast States have seen slightly lower prices over the last few weeks. This time of year the people in the Southeast states are more concerned with the start of college football than asphalt markets.
The Rocky Mountain region prices are flat and have been for several weeks. Demand is moderate and supply is adequate.
Pacific Northwest markets are slightly down from a few weeks ago. Demand is moderate and supply is good.
Suppliers and contractors around the country are concerned about demand in 2011. The current Federal highway bill expires on December 31, 2010.
Our September 1, 2010 price list will be posted by August 30, 2010 on our web site under Products / Asphalt.
The July, 2010 Oregon MACMP: Poten Pacific Northwest: $468, Poten Boise Idaho: $520
http://www.oregon.gov/ODOT/HWY/ESTIMATING/asphalt_fuel.shtml#Asphalt
The WSDOT Asphalt Binder Reference Cost: West: $491.25, East: 510.00 (August 15, 2010)
http://www.wsdot.wa.gov/biz/construction/AsphaltIndex.cfm
OTHER RESOURCES
Click Here For Industry News July. 15th, 2010 PDF
Click Here For Industry News June. 14th, 2010 PDF
Click Here For Industry News June. 1st, 2010 PDF
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