Report: Asphalt demand to rise each year through 2017

Demand for asphalt in the United States is forecasted to increase 3.7 percent annually to 27.9 million tons in 2017, according to a Freedonia Group Inc. report. Demand is expected to advance from its low 2012 base, spurred by growth in highway and road construction spending and building construction expenditures.

Still, the Freedonia Group reports that 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, the Freedonia Group says.

According to the Freedonia Group, paving products accounted for 71 percent of asphalt consumption in 2012. They will remain the leading application for asphalt going forward, increasing 3.9 percent per year to 20.2 million tons in 2017.

The Freedonia Group also says paving products demand will 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. Demand for asphalt emulsions will benefit from the 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 3.0 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, the Freedonia Group reports.