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US demand for asphalt to approach 28 million tons in 2017

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 this is refined petroleum asphalt.

Demand for asphalt is expected to grow from its low 2012 base, driven by increased spending on highway, road, and building construction—the two largest markets. However, in 2017, asphalt demand will not reach the levels seen in 2007. Rising use of recycled asphalt pavement (RAP) and a focus on rehabilitating and repairing older surfaces, rather than building new roads, will temper demand growth. These and other trends are detailed in the report Asphalt, from The Freedonia Group, a Cleveland-based industry market research firm.

Paving products accounted for 71% of asphalt consumption in 2012 and will continue to be the main application. The passage of the MAP-21 Act, which assures funding for highway and road projects through October 2014, will provide an immediate demand boost. However, long-term growth will be limited by efforts to maintain existing infrastructure.

Demand for paving products will also be affected by increased use of in-place recycling methods, favored for their cost-effectiveness but which reduce demand for asphalt cement. Conversely, demand for asphalt emulsions will benefit from increased RAP use, as emulsions can rejuvenate worn surfaces and repair highways.

Demand for asphalt used in roofing and other applications is forecast to rise 3% annually to 7.7 million tons (6.9 million tonnes) in 2017, supported by a rebound in construction spending. The residential sector will see the fastest growth, driven by increased single-family housing completions. Non-residential construction will also boost demand for low-slope roofing products like modified bitumen membranes and roll roofing.

For more details, the report Asphalt (published 08/2013, 345 pages) is available for $5,300 from The Freedonia Group, Inc. Contact Corinne Gangloff at +1 440 684 9600 or via email. Additional information can be obtained through their website.