East Coast
Wholesale buyers have purchased less winter-fill volumes so far this winter than they have in past years. Lower production from local refiners was reported to be a key reason for the reduced inventories in buyers’ tanks.
Delivered wholesale prices to the region were reported to be creeping upwards for March. One buyer reported that delivered quotes for PG 64-22 were in the $250-260 range. But the buyer received at least one quote that was higher, at $270 delivered.
In the New England market, retail prices were holding at rack prices that were observed at the end of last season. In Boston, Massachusetts, retail prices were at $370-375 fob for PG 64-28. Some other prices heard in the Boston market were in a wider $345-375 fob range for PG 64-28.
In eastern New York, retail prices were at $290 fob for PG 64-28. In western New York, one local participant reported that it was quoting the state index at lettings minus $20 for PG 64-22. The grade PG 64-28 was carrying a $25 premium in the western New York market.
In northern New Jersey, retail prices were reported to be stable at $285 fob. And in southern New Jersey, prices were at $275-280 fob for PG 64-22.
In Baltimore, Maryland, prices were at unchanged at $280-285 fob for PG 64-22. In Virginia, asphalt prices were in the $285-295 fob range for PG 64-22, while in the Carolinas, prices were at $310 fob. Atlanta, Georgia, prices were a firm $305, while Savannah prices were at $15 lower.
In Jacksonville, Florida, prices were at $285 fob for PG 67-22. Another local supplier had its price holding at $285-290 fob. Tampa, Florida, prices were in the $285-290 fob for PG 67-22.
Gulf Coast
Eastern Gulf coast wholesale prices rose by $10 with the completion of new transactions for March. The western Gulf coast wholesale asphalt market was unchanged, but wholesale supply was limited. Crude price strength, higher breakeven costs and a limited availability of wholesale asphalt barrels from Gulf coast refiners were the main reasons behind the stronger wholesale prices compared with February. The fire at an asphalt-producing refinery is expected to have an impact on asphalt supply in the region.
An eastern Gulf coast refiner sold 55,000 bl of PG 67-22 at a delivered price of $225/st, or a fob equivalent price of $215/st. The volume is expected to move in March.
An eastern Gulf coast refiner sold a 10,000 bl parcel of PG 52-28 at $245 delivered, or a fob equivalent price of $225, for a March delivery.
Retail prices were relatively firm in the Gulf coast region. Marketers reported that nice paving weather after the early February cold snap has allowed for paving to progress.
In southern Alabama, prices were stable at $325 fob for PG 67-22. Northern and central Alabama prices were at $335 fob for PG 67-22.
In southern Mississippi, prices were at $330 fob for PG 67-22. The southern Louisiana market was reported to be at $325 by one player, and $320-325 fob by another.
Southern Texas prices were reported to be a firm $275 fob for daily rack liftings. One supplier pointed out that its price has been stable at the $275 level since last September. Volumes moving into the Dallas/Fort Worth, Texas, market from Oklahoma were at $275 fob.
One supplier stated that future work for this year is being quoted at $300 fob or $300 with escalators. One player stated future work is being signed up at the $300-325 fob level in Texas.
In New Mexico, colder temperatures slowed down asphalt activity. One marketer reported moving a few truck loads sporadically. Prices were reported to be at around $300 fob for PG 64-22.
Midwest
Midwest wholesale buyers stated that there are limited paving transactions occurring from midwest suppliers. At least one midwest refiner will be in a 45-day turnaround from April through mid-May. The turnaround is expected to affect a significant amount of asphalt production. Hence, the refiner is attempting to fill its own asphalt terminal locations.
There were limited wholesale transactions reported by midwest buyers. One buyer stated that refiners are moving asphalt within their own refinery system. One buyer stated that one or more midwest suppliers may be processing lighter crudes and making less asphalt.
There was a wide range of wholesale asphalt prices heard from the midwest. The range was heard at $195-215 fob, but more strength was reported at the $200-215 fob range for March transactions of PG 64-22 that are moving within the midwest market.
A midwest flux supplier reported selling 90,000-100,000 bl of roofing flux for March delivery at a price of $205-220 fob. The supplier stated that two-thirds of the volume was transacted at the $205 fob level. The supplier stated that this was a stable to $10 decline in its prices compared with February.
In central Illinois, one supplier was still quoting the index. But for private jobs or jobs where quotes did not apply, the supplier was at $325 firm. The supplier stated that its price was a response to information regarding competitive pricing from the Chicago market of $310 block prices, or $325 quotes for the entire year.
In the Chicago market, one participant reported its price for PG 64-22 to be at $330 through June, and $355 fob from 1 July through 31 August.
Another Chicago supplier reported that it raised its PG 64-22 prices to $350 fob for summer paving work that was not already under contract. This was an increase from its previous quotes of $330-335 fob.
In northwest Indiana, one supplier was at $330 fob for PG 64-22 for paving through 30 June, and $355 fob from July through August.
In the Indianapolis, Indiana market, one supplier reported its price to be at $330 firm, which was down from its previous price of $350 firm. The supplier stated that the price was already in effect and was in response to competitive pressure.
One northern Ohio participant was at $335 fob for PG 64-22 through 30 June, and $360 fob from 1 July through 31 August. One midwest supplier reported its Canton and Cleveland, Ohio, markets to be at $390 not-to-exceed through July 2007, and $425 not-to-exceed through December 2007. The supplier stated that it has signed up work at this level.
Cincinnati, Ohio, prices were at $295 fob for PG 64-22. In western Kentucky, one supplier stated that its prices were supporting the index in Kentucky, depending on which state its volumes were moving to. In Tennessee, prices were reported to be unchanged. Memphis was at $323, wile Knoxville was at $310 fob. Chattanooga prices were heard at $290 fob.
Rocky Mountain and west coast
Rocky Mountain wholesale rail prices for March were heard mostly in the $185-195 fob range for PG 64-22 compared with $175-195 fob range in February. One buyer reported the range to be wider, at $180-195 fob for PG 64-22. The higher wholesale prices were reported to a result of crude price strength and less wholesale asphalt availability in the region.
Rocky Mountain wholesale asphalt buyers are finding that there is less wholesale asphalt available in the winter-fill market compared with previous years. Refiners’ emphasis on running lighter crudes was reported to be the main reason behind the lower production levels of wholesale asphalt.
The retail market was very stable in the Rocky Mountain region. Marketers reported that there was concern in the Rocky Mountain region about supply availability, primarily in Colorado and Wyoming, because of the planned construction and expansion of cokers in the region.
In Montana, retail prices were in the $340-360 fob range, while in Wyoming and Colorado, retail prices were at $350-360 fob for PG 64-22 and PG 58-28. At least one supplier was thought to be at a lower price in the Wyoming market.
In Utah, AC-10 prices were at $390 fob, while Boise, Idaho, prices were at $425 fob for PG 58-28.
In Phoenix, Arizona, prices were stable at $340-360 fob for PG 64-16 and PG 70-10. Highly modified (110 PAV) PG 76-22 was reported to be at $550 fob. In Tucson, prices were at $345-360 fob for the main grade PG 70-10, while Flagstaff prices were at $380 fob for PG 64-22. The fire at the McKee, Texas, refinery caused further asphalt supply concerns for some local participants.
In Oregon, prices were holding at $330-340 fob the supplier for PG 64-22. In Las Vegas, Nevada, prices for AC-30 were stable at $360 fob.
On 1 March, the southern California market firmed up slightly to $290-310 fob range for PG 64-16. Prices in the previous week were reported to be in the wide $275-300 fob range. Higher production costs were reported to be the main reason behind the price move. The northern California market was reported to be at $300 fob for PG 64-16 and PG 70-10.
Canada
There was very little volume moving in the eastern Canadian market. Most hot-mix plants are closed for the winter. The last asphalt prices that were heard in the Toronto market were back in December 2006, when prices were at C$390 for PG 58-28. Last prices heard in the Montreal, Quebec, market in December 2006 were at C$280.
If any new prompt sales were to apply, marketers do not expect to supply these volumes at last year’s prices. One refiner stated that its new prices for PG 58-28 for liftings that might occur in March would be C$300/t fob in the Montreal, Quebec, market. The supplier stated that this was not an opening of the season price, but a transition prices until the first provincial tender that will occur around 10-15 of April. This bid will have volumes for paving in the second half of April to the second half of May. Local marketers anxiously await this bid as it provides the first indication of prices for the new 2007 paving season.
There were no additional rack prices changes heard in western Canada, following the C$100 rack price increase by two local refiners. The increase brought stationary plant prices in line with end-product specification market or the provincial tendering market. One increase was effective on 12 February, while the second supplier’s increase was effective on 16 February. With the increase, the Edmonton market increased to C$495, Vancouver to C$535, Prince George to C$550, Kamloops to C$540 and Winnipeg to C$535.
Last quotes at Alberta provincial tenders for summer paving work were at C$534-540 fob, the closest for Pen 150-200 grade.
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