New York/span>
East coast
The east coast wholesale asphalt market was quiet, as buyers continued to work
off the higher-priced inventory in their tanks. New England delivered cargo
prices for PG 64-28 were at $250-255/st, according to a local buyer.
An east coast buyer reported purchasing flux wholesale asphalt at $240-245 delivered from an export source. The buyer said the volume was for prompt movement.
Rack prices on the east coast softened, with price drops of around $10-15 in some markets. The price movements reflected local marketers’ attempts to move some additional asphalt volume before the season comes to a close due to inclement weather conditions.
In New England, one supplier reported its prices at $370-380 fob for PG 64-28 in Massachusetts and New Hampshire. Southern Connecticut prices were at $375-380, exclusive of the 6.3pc gross receipts tax.
In western New York, PG 64-22 prices were slightly softer at $325 fob. PG 64-28 prices were unchanged at $350 fob. Eastern New York prices were unchanged at $320 fob for PG 64-22.
In the Bronx, New York, and in northern New Jersey, PG 64-22 prices from one participant softened from the $315 fob level to $305 fob. Another player said the northern New Jersey market was at $305-315 fob for PG 64-22. In southern New Jersey, prices softened from $310 fob to $300 fob. Some prices were heard as low as $295.
The Virginia and Maryland markets were at $310-325 fob, according to one source. Another player reported Maryland at $305-310 fob, while Virginia was at $310 fob.
One Atlanta participant had its prices stable at $340 fob. Savannah prices softened slightly from $320-325 fob to $320 fob.
In Tampa, Florida, one supplier quoted at $320 fob. Another supplier dropped its Jacksonville prices from $325 to $320 fob for PG 64-22.
Gulf coast
Gulf coast wholesale buyers appear to be more willing to sign up
wholesale volumes than they were a few weeks ago. With the end of the year
looming, some buyers were concerned that they may miss an opportunity to
purchase at what could be the lowest wholesale prices in the region.
Buyers were mostly seeking wholesale volumes from Gulf coast refiners, and not Midwest refiners, as the latter could only produce PG 64-22, and not PG 67-22. Gulf coast states such as Alabama and Mississippi require PG 67-22.
An eastern Gulf coast refiner sold 35,000-40,000bl of PG 67-22 at $247 delivered, or a fob equivalent price of $220. The volume is for November delivery to a Gulf coast location.
Retail prices were relatively stable in the Gulf coast market. Northern and central Alabama prices were at $350 fob for PG 67-22. Southern Alabama prices were at $370 fob.
Southern Mississippi prices were at $350 for PG 67-22. Southern Louisiana prices were holding at $325 fob for PG 64-22 from one player, with another participant reporting prices at $330-335 fob.
In Texas, coastal prices were stable at the $275 fob level. Volumes moving from Oklahoma into the Dallas/Fort Worth market were also at $275 fob for PG 64-22.
Midwest
Midwest wholesale barge prices softened from the prior week’s
$195-230 fob range to the $185-210 fob range last week for PG 64-22. One
refiner said the range was $190-210 fob for PG 64-22.
One Midwest refiner sold 475,000bl of PG 64-22 by barge at a delivered price of $190-200 fob. The volume is expected to move from November through January, with the bulk expected to move in December.
One refiner said it was currently supplying some older wholesale barge deals that were done a couple of months ago. Those volumes will be moving at $275-280 fob for PG 64-22.
According to one local refiner, barge quantities of PG 58-28 have a premium of $15-25 over PG 64-22 barge quantities, while AC-5 wholesale volumes have a $20 premium over PG 64-22.
One Midwest refiner reported selling a small quantity of wholesale asphalt at $215 fob for PG 58-28. The supplier said the volume was moving southbound and westbound by rail. The volume is expected to move before the end of this year. The supplier said it has not quoted any prices so far for 2007 paving.
One or more Midwest buyers have purchased their volume requirements for the winter and are out of the wholesale buying market.
With the improvement in weather conditions, some Midwest suppliers saw dramatic increases in asphalt liftings. One supplier said the weather was allowing them to make up for the very wet conditions in October. If the weather stays paving-perfect for the next two to three weeks, some of the volume that was purchased by wholesale buyers for winter-fill purposes could get used up before the end of this year.
At a last North Dakota letting there was about 4,000-5,000t of liquid for bid. One supplier took the work with a quote of $349 fob for PG 58-28. Another North Dakota supplier was at $400-420 fob, while quotes from northern Minnesota were at $430 fob PG 58-28. Quotes from Canadian sources were heard at $400-416 fob.
Minnesota bid a small state letting for next year’s paving.The job was quoted by a northern Wisconsin supplier at $395 fob for PG 58-28, while a Minnesota refiner quoted $400 fob.
Southern Minnesota prices were in the $295-300 fob range for PG 58-28. One local player said this market is expected to come to a close soon.
Prices in Wisconsin for next year’s work have been quoted at $390-400 fob refinery, and $430 fob terminals.
In Detroit, Michigan, one supplier reported its reference price at $360 for PG 64-22, with sales at that level. The supplier said it had gone to $330 delivered to Toledo to match some $330 fob prices in that market. One supplier had a $25 premium for PG 58-28 over PG 64-22.
In northern Ohio, one supplier had its reference prices at $345 fob for PG 64-22, with sales at that level. Indianapolis, Indiana, prices were at $330 fob for PG 64-22, with a $30 premium for PG 58-28. Northeast Indiana prices were at $360, with some at $332-336 towards the Chicago area. This market had a $20 premium for PG 58-28. Central Illinois prices were at $330-340 fob for PG 64-22.
Northern Kentucky prices were at $325 fob. Eastern Tennessee prices slipped slightly to the $325 fob for PG 64-22.
Rocky Mountain and west coast
Rocky Mountain wholesale prices slipped slightly from the $195-215
range in the prior week to the $195-210 fob range last week. One refiner
reported completing a winter-fill deal for prompt movement at $210/st on a fob
basis. The volumes are expected to move by rail to destinations southbound and
westbound. Another supplier was at $195 fob for PG 64-22 rail movements to a
west coast location.
US Rocky Mountain wholesale suppliers were aware that there was wholesale supply available from western Canadian sources for the winter-fill market. Quotes from western Canadian sources were heard in the $195-210/st fob range. One western Canadian refiner was looking for customers with railcars as it has several of its own cars tied up in delivering asphalt to its own terminal locations.
Although asphalt retail prices rose with crude costs during the course of this year, several Rocky Mountain suppliers had lower price commitments for 2006 from late last year which kept their asphalt prices from changing with the market.
There is limited paving activity in the northern Rocky Mountain states due to rain, and even snow is some parts. In Montana, highway jobs have shut down, with only some town work proceeding.
In Montana, a job was bid requiring 7,300t of PG 70-28 for 2007 paving. One central Montana supplier quoted $469.50/t fob. PG 70-28 typically carries a $100-120 premium over PG 58-28 or PG 64-22 in this market. The Billings area was at $419/t for PG 64-28, and was able to take some work at that price level. In Montana, there has been no conventional asphalt bid lately for 2007 paving.
In Phoenix, Arizona, the market was reported to be at $395-400 fob for PG 64-16 and OG 70-10. Paving-perfect weather conditions allowed for strong paving activity in Arizona. In northern Arizona, prices were holding at the $415 fob price for PG 64-22.
In northern California, asphalt prices slipped to the $315 fob level for PG 64-10 and PG 64-16. Price changes by one local supplier caused other market participants to match prices. The price change was reported to have rippled through the California market, causing the southern California market to slip to the $315 price level.
Canada
Eastern Canadian marketers are
still paving, and expect to continue until the first big snowfall. Most traders
say there is at least another two weeks of paving left before the hot-mix plants
start to shut down.
Montreal, Quebec, asphalt prices continued to soften, but at a slower rate than in the past several weeks, with prices slipping by C$5 to C$300-305/t for PG 58-28. PG 58-34 was reported to have a C$40-45 premium over PG 58-28, while PG 64-34 had a C$100 premium over PG 58-28.
One Montreal refiner dropped its posted prices by C$12 on 10 November to reflect the price weakness in the market.
Toronto, Ontario, prices have shown stability, especially when compared to the neighboring Montreal market. Prices were stable at the prior week’s C$390-410 fob range for PG 58-28.
In western Canada, Alberta had a highway tender on 7 November with 7,000t of Pen 120-150 for next year’s paving. The work was taken at C$541 fob the closest supplier. This was the only major bid last week in western Canada. Alberta bid a 2,000t job for paving near Edmonton on 15 November.
So far, Alberta has bid about a third of its highway work for 2007, or about 1mn t of hot-mix. Alberta bids for next year so far have been in the C$535-550 range for conventional asphalt.
There were no rack price adjustments from western Canadian refiners — last changes were in summer this year. One refiner pointed out that it did not expect to have any price changes this year due to the end of the season. The next rack price adjustments are expected to occur in spring, before the start of the 2007 paving season.
Western Canadian refiners have some wholesale asphalt to offer into the winter-fill market. One refiner said it has not done any deals below US$195/st fob. Recent quotes were reported to be in the US$195-210/st fob range. One refiner said it was looking for customers with railcars as it has several of its own cars tied up in delivering asphalt to its own terminal locations.
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