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East coast
Wholesale prices for paving grades were relatively stable in the East coast. Several wholesale buyers have less asphalt inventories than is typical for this time of the year, and do not expect to be able to fill their inventories during the course of the year. Despite the relative stability in the wholesale market, asphalt retail prices continued to firm.
One export source to the East coast did not have any wholesale barrels to sell to the market due to a refinery turnaround.
A New England wholesale buyer confirmed that PG 64-28 barge quantities were being quoted into the New England market in the $330s on a delivered basis. The buyer stated that it had a commitment to purchase a wholesale barge at this price level from a New Jersey refiner for delivery in the first half of June. There were no new transactions reported for PG 64-22, with last numbers heard at the $310 fob level from New Jersey refiners.
The higher wholesale prices continued to put pressure on East coast retail prices, with a few price increases announced on the East coast. Wholesale buyers and resellers pointed out the continuous rise in wholesale prices necessitated these retail increases as they attempt to stay ahead of their rising costs.
In Portland, Maine, PG 64-28 retail prices were at $365 fob. In Massachusetts and southern Connecticut, prices rose last week to the $350-360 fob level for PG 64-28. Inclusive of the 5.8pc gross receipts tax in Connecticut, the PG 64-28 price to customers was $20-21 higher - or an effective price of $370-381 fob.
The New York state index moved up to $349 fob for June. In eastern New York, one supplier raised its prices to the $350 fob level for PG 64-22. In western New York, one supplier raised its reference price from $305 to $315 fob for PG 64-22, effective 1 June. The supplier stated that it increased its selling price from the $295-305 range to $315 fob on 1 June.
The Pennsylvania index for June rose to $371 for Zone 1 (east) and $316 for Zone 3 (west), with an average of $343.50 (central) for Zone 2. In Pittsburgh, Pennsylvania, one supplier reported its reference price at $300. The supplier stated that its last quotes were index rated with no window protection. The supplier added that it was quoting on a limited basis, and only to historical accounts. Another western Pennsylvania supplier reported its price at $325-340 fob for PG 64-22.
One East coast supplier raised its prices at three terminal locations in North Carolina and Virginia to $365 fob for PG 64-22, effective 1 June. The supplier stated that it had sales at the $365 fob level at all three terminal locations.
One Georgia supplier raised its prices to $365 fob across the state. In Atlanta, one supplier was reported to be at the $350-360 fob level. One Florida supplier was at $350 fob in Tampa and Jacksonville, Florida. In southern Florida, one supplier raised its prices from $360 fob to $370 fob, effective last week. Another supplier was reported to be at $365 fob for PG 64-22.
One Florida supplier was concerned that asphalt inventories are not as high as they should be prior to the start of hurricane season in the US Gulf coast. The marketer pointed out that with demand as high as it is in Florida, it will be difficult to impossible to build this inventory cushion over the summer months.
Gulf coast
Gulf coast wholesale prices edged up slightly last week. However, the big change appeared to be on the retail end where prices rose in the Gulf coast states of Alabama and Mississippi. Strong local asphalt demand, rising wholesale asphalt prices and a lack of excess asphalt in inventory were reported to be the main reasons for the adjustment in asphalt retail prices.
An eastern Gulf coast supplier sold 35,000-40,000 bl of PG 67-22 at $315-320 delivered. The fob equivalent price was reported to be at $305-307 fob, a few dollars higher than the level seen in the prior week. The refiner stated that it did have additional wholesale availability for June.
The Alabama index rose by $49.35 from $296.10/st in May to $345.45/st in June for PG 67-22. On 22 May, a central and northern Alabama supplier reported raising its prices to $325 fob for PG 67-22. The supplier notified its customers that it would be moving to the $375 fob level in central and northern Alabama, effective 5 June.
Another Alabama supplier reported its selling price to be at $340-350 fob for the month of June. Yet another central Alabama supplier was reported to have moved its prices up to the $365-375 fob level effective 1 June. A southern Alabama supplier raised its prices to $360 fob for PG 67-22, effective 1 June, from the $325 fob level.
A Mississippi supplier raised its prices to $325 fob for PG 67-22 on 22 May in southern and central Mississippi. The supplier notified its customers that it would be raising its prices to $365 fob, effective 5 June. Another local supplier raised its prices to the $365 fob level, effective 1 June.
In southern Louisiana, one supplier was holding its prices at the $320 fob level for PG 64-22. In southern Texas, PG 64-22 prices were at $350 fob. Volumes moving from Oklahoma into the Dallas/Fort Worth market in Texas were at $325 fob for PG 64-22.
Midwest
Wholesale waterborne (barge) prices for PG 64-22 rose from $290-325 to $315-325 fob last week due to wholesale market tightness. However, rail wholesale deals for PG 64-22 were in a wider $300-350 fob range. Marketers commented that factors such as timing of delivery, size of the purchase and location of the buyer may have contributed to the wider range for rail wholesale deals.
A Midwest buyer reported purchasing a total of 80,000 bl of PG 64-22 for delivery by barge at $315 fob. The volume will be delivered in June. One Midwest supplier was selling barge quantities of PG 64-22 at the $325 fob price.
Rail wholesale deals were in a wider $300-350 fob range for deals done last week. A Midwest wholesale buyer reported purchasing 3,500t of PG 64-22 at $350 fob. The deal was done last week for rail delivery in June. In another deal, a Midwest wholesale buyer reported purchasing 10,000t at $300 fob from a northern Midwest refiner for delivery by rail. The buyer reported that most of the volume was PG 64-22. One Midwest refiner reported selling PG 64-22 by rail at $335 fob its refinery.
One wholesale supplier reported completing PG 58-28 barge and rail deals at $355 fob the Midwest. The supplier stated that its PG 58-28 had a $30 premium over PG 64-22 for both barge and rail deals. Another Midwest supplier was offering a $10 premium over PG 64-22 for wholesale quantities of PG 58-28. The supplier stated that its premium could change based on market conditions.
A Midwest refiner reported selling slightly over 100,000 bl of roofing flux in the $295-310 fob range. The supplier stated that 75pc of its volume was sold at the $310 level, while the remaining 25pc was at the $295 fob level. The supplier stated that this represented a $25-30 increase over its May price level. The volumes will move by truck, rail and by barge in the Midwest market. Another refiner reported its recent flux deals at $325-350 fob.
Retail prices and quotes were reported to be stable to slightly higher. In markets that were higher, prices were up by around $10-15 over the prior week. Demand was reported to be strong, with product outages reported at one or more terminal locations.
In Oklahoma, one supplier was in the $325-330 fob range for PG 64-22. Another supplier reported a minimum price for $350 fob for PG 64-22 in both Kansas and Oklahoma.
In Minneapolis/St Paul, Minnesota, one supplier reported selling asphalt at $325 fob for PG 58-28. This price was for small tonnage that will move in June. A portion of the current volume that is moving in this market was reported to be at the $300 fob level, based on deals done earlier for June movement. One supplier commented that there is carryover in this market from last year that is at the $180 fob level.
In Chicago, Illinois, the range for new deals was heard at $390-400 fob for PG 64-22. One supplier reported its truck rack date-of-shipment sales to be at $340 fob for PG 64-22. A PG 64-28 job was recently quoted at $540 fob by one local supplier.
One central Illinois marketer was at $400 fob for PG 64-22. Another Illinois marketer reported quoting $390 not-to-exceed, with a floor of $350 fob for PG 64-22 in the northern and central portion of the state. The supplier stated that it had already signed up work at this level. The supplier had a $10 premium for PG 58-28 in this market. One Illinois marketer stated that there is a substantial amount of committed work on the books in the state.
In Indianapolis, Indiana, one supplier reported its reference price at $350 for PG 64-22. The supplier stated that its had already signed up jobs at recent lettings at the $390 fob price for PG 64-22, and $420 fob price for PG 58-28. A northwest Indiana supplier had a price of $390 fob for PG 64-22.
A northern Michigan supplier was at $410 fob for PG 64-22, with a $30 premium for PG 58-28. The supplier stated that it was selling asphalt at this price level.
One Detroit, Michigan, supplier raised its reference price from $300 to $320 fob, effective 1 June, for PG 64-22. PG 58-28 was reported to have a $20-25 premium over PG 64-22. One supplier reported its recent quotes in Detroit to be at $360 and $385 fob for PG 64-22 and PG 58-28 respectively.
A northern Ohio supplier reported raising its reference prices from $300 to $315, effective 1 June. The supplier stated that its quotes were unchanged from the $375 fob level for PG 64-22. Another northern Ohio supplier was at $400 fob for PG 64-22. In Cincinnati, one supplier raised its price by $20 to $340 fob for PG 64-22. At least one supplier was reported to be tight on asphalt in southern Ohio.
In western Kentucky, one supplier reported having a reference price of $350 fob for PG 64-22. The marketer stated that it is quoting the state index at lettings. One supplier was offering a $10 premium for PG 58-28 in this market. In eastern Kentucky, one supplier raised its price by $20 to the $330 fob level for PG 64-22.
In Tennessee, Chattanooga prices were unchanged. Knoxville prices were increased by $20 to $350 fob for PG 64-22. Louisville, Memphis and Nashville prices were increased by $15 to $340, $325 and $335 respectively.
One Midwest supplier stated that it has been moving to date-of-shipment prices instead of signing contracts with customers since April this year due to the volatility in the market. This trend started in the Midwest last year, due to crude price volatility, and continues to be adopted by more market participants.
Rocky Mountain and west coast
The Rocky Mountain market remained tight last week, causing prices to continue to firm. Wholesale deals for June were reported to be mostly in the $275-305 fob range for PG 64-22, an increase from the $250-305 fob range in the prior week. One refiner pointed out that its wholesale prices applied to early June and could go up during the course of the month, depending on market supply/demand fundamentals for asphalt.
One supplier reported quoting the $350 fob range to a buyer for up to 4,000t of PG 58-28. The supplier stated that it had a verbal agreement with the buyer, but did not have a signed contract as yet. The supplier believed that the market was at the $300-350 fob level for PG 64-22/58-28. One buyer reported receiving a quote for June supply from a Rocky Mountain supplier at the $340 fob price for PG 64-22.
Rocky Mountain refiners stated that they have more demand from wholesale buyers than they can possibly supply. These refiners reported that they have been focused on supplying their historical customers only with their available supplies of wholesale asphalt.
Some Rocky Mountain and west coast states are tight on asphalt supply. In Colorado, Utah, New Mexico and Arizona, supply was reported to be particularly tight, with concern mounting regarding supply availability during the peak summer paving months.
In Montana, the current market for PG 58-28 was reported to be at $350 fob. One supplier pointed out that the current retail market in the state was at $300-375 fob for PG 58-28, with older contracts at the $200 fob level.
At a recent letting, PG 70-28 was bid at $460/t on a fob basis in the central part of the state, while quotes from the Billings area were heard at $461/t fob for the same project.
Recent quotes in the Wyoming market were heard at the $380-390 fob level for PG 64-22. Work on the books that is moving was reported to be at the $210 fob level for PG 64-22. In Utah, the market price was reported to be in the $300-310 fob range for PG 64-22.
In western Washington, prices were heard at the $325 fob level for PG 64-22, effective 1 June. In Oregon, prices were reported to have moved up to the $300 plus fob price level, effective 1 June, with no prices under the $300 fob level. Based on announcements, prices are expected to firm up further to the $325 fob level, effective 15 June.
In Phoenix, Arizona, on 1 June, prices firmed up from the $300-350 fob range towards the $350 fob level for PG 70-10 and PG 64-16. Also on 1 June, modified PG 76-16 firmed towards the $375 fob level. In northern Arizona, pries were at $350 fob for PG 58-22 and PG 64-22. Arizona marketers pointed out that they continue to focus on supplying their historical customers.
The Nevada market was reported to have firmed up to the $325 fob level for PG 70-10. There was some shortness of supply reported in the Las Vegas market.
In northern California, the market was reported to be at $345 fob for PG 64-10, PG 64-16 and PG 70-10. In southern California, prices were reported to be slightly higher, at the $360-375 fob range for PG 64-10. One southern California supplier reported that it was selling asphalt from its new terminal location at the price of $375 fob. PG 70-10 was reported to have a $10 premium over PG 64-10, while PG 64-16 (for rubber asphalt jobs) had a $5 premium over PG 64-10. One southern California supplier anticipated a price increase of $10-15 by mid-month due to rising wholesale costs.
Canada
Posted and selling prices in the east Canadian market continued to firm up on 1 June. One marketer pointed out that the import alternative is driving prices in the eastern Canadian market.
In the Toronto, Ontario, market, one or more suppliers raised their posted prices on 1 June to C$462 fob for PG 58-28. With this price increase, the market selling price for PG 58-28 was reported to be in the C$450s fob. One supplier pointed out that this market was slightly firmer than the Quebec market due to one supplier's off-spec material for the last three weeks.
In east Canadian province of Quebec, prices rose as well, but not as much as in Ontario. The re-entry of one supplier into the market, along with news that another supplier may have procured imported asphalt volumes to supply to the local market, caused concerns amid other existing suppliers. This was reflected in the posted and selling price ranges.
An east Canadian asphalt supplier raised its posted prices on 1 June by C$42 to C$457 for PG 58-28. The supplier also raised prices for PG 64-28 and polymer PG 58-34 by C$42 to C$487 and C$517, respectively.
The east Canadian market was reported to be at the C$443-450 range for PG 58-28 following the last provincial tender in Quebec.
In western Canada, rack prices increased by C$60 on 25-27 May. Effective 25 May, one refiner raised its rack prices by C$60 at all locations. With this increase, its Edmonton price went to C$420, Vancouver to C$460, Kamloops to C$465 and Winnipeg to C$460. Effective 27 May, another west Canadian refiner raised its rack prices by C$60 at all locations. With this increase, the supplier's Edmonton price went to C$420, Vancouver to C$460, Prince George to C$475, Kamloops to C$465 and Winnipeg to C$460.
In Alberta, recent tendering work for highways that required Pen 150-200 has been bid at C$430-440 fob the closest supply source. These prices are for jobs that will pave in 2006.
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