Asphalt demand expected to rise

U.S. demand for asphalt is projected to expand 1.5% per year through 2007 to more than 37 million tons, generating demand for 206 million barrels of primary asphalt. The value of asphalt-containing products is expected to reach $10.8 billion in that year. Growth will proceed at similar paces in the two large asphalt-using markets, paving and roofing.

Increases in asphalt demand in paving applications will be aided by road construction and maintenance activity. One risk to the forecast is the eventual outcome of efforts in Congress to enact federal transportation legislation to succeed the Transportation Equity Act for the 21st Century (TEA-21). Concerns about homeland security and other federal budget priorities may limit potential increases in federal highway spending from the levels in TEA-21, constraining the market for asphalt paving products. Asphalt cement will continue as the dominant asphalt paving product. Continuing adoption of performance-based specifications for road projects will generate demand for polymer-modified asphalts.