First publishedon www.AggBusiness.com
US demand for asphalt is forecast to increase 3.7% annually to 27.9 million tons (25.3 million tonnes) in 2017, which 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 spending on highway and road construction and building construction, the two largest markets. 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. These and other trends are presented in Asphalt, a new study from The Freedonia Group
, a Cleveland, US-based industry market research firm.
Paving products accounted for 71% of asphalt consumption in 2012, and will remain the leading application for asphalt going forward. 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 to October 2014, will provide an immediate boost to demand for paving materials. However, long term gains will be limited by efforts of government agencies to maintain existing road networks.
Paving product demand will also be negatively affected by increasing use of in-place recycling road construction methods. These methods are favoured by state transportation agencies because they are less costly but suppress demand for asphalt cement, the most frequently specified paving material. Demand for asphalt emulsions, however, 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.
Demand for asphalt used to make roofing and other products is forecast to rise 3% annually to 7.7 million tons (6.9 million tonnes) 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 non-residential segment, rising construction spending will support demand for low-slope roofing products, such as modified bitumen membranes, roll roofing, and mopping asphalts.
Asphalt (published 08/2013, 345 pages) is available for US$5,300 from The Freedonia Group, Inc., 767 Beta Drive, Cleveland, OH 44143-2326. For further details, contact Corinne Gangloff by phone: +1 440 684 9600 or email firstname.lastname@example.org
. Information may also be obtained through www.freedoniagroup.com