Asphalt — North America market commentary

Spanish Market: Oil products
01/09/08

US East coast
Crude price weakness and increased availability of wholesale asphalt into the east coast caused the east coast New Jersey barge fob range to slip from $730-750 to the new range of $720-730 fob for September deliveries. One local refiner remained out of the asphalt market as it was focussed on meeting its own terminal system requirements.

One wholesale buyer stated that it had recently been offered a barge from the Gulf coast at $790 delivered for PG 64-22, but had decided not to do the deal.

There were a couple of new deals done for delivery into the New England market. One supplier sold parcels of PG 64-28 into New England at $740-750 delivered. These prices were lower than some deals done in early August in the $810-830 delivered range for PG 64-28.

Retail prices were relatively stable, with Massachusetts and New Hampshire prices in a range of $700-810 fob. But most new transactions were at the higher end of the range. In Connecticut the range was reported to be at $730-830, exclusive of gross receipts tax.

While there were no price changes heard during the week, at least two suppliers were planning price drops, effective 1 September. One supplier announced that it was taking its prices down by $50 at its terminals north of North Carolina. With this price change, the supplier's price in southern New Jersey would move to $735, while its prices at terminals from New York to Virginia would move to $750 fob for PG 64-22.

Another supplier was also dropping its price by $50 on 1 September. The supplier stated that its price in southern New Jersey would move to $735, while its Maryland and Virginia terminals would move to the $750 fob level for PG 64-22.

Western New York retail asphalt prices were holding at $745 fob for PG 64-22, while western Pennsylvania prices were at $730 fob.

There were no price changes heard from North Carolina to Florida. One coastal supplier in the Carolinas was at $740 fob. Tampa, Florida prices were in the $690-710 fob range.

US Gulf coast
There were no new wholesale deals in the US Gulf coast market. While prices were being discussed, impending hurricanes in the US Gulf coast made it difficult to work out any deals from a delivery timing and price standpoint.

A week ago, a Gulf coast cargo was discussed at $790 delivered to the east coast, but the deal did not get done. There were no quotes heard this week, keeping the wholesale barge range unchanged at $685-705 fob for PG 67-22.

One refiner that was not producing asphalt because of weak economics was reported to have resumed asphalt production. Asphalt breakeven values dropped with the recent drop in crude. Additionally, asphalt has been a much better alternative than fuel oil (HSFO alternative was under $500), providing an economic incentive for refiners to switch to asphalt production.

One Gulf coast wholesale asphalt buyer stated that demand was slowing down seasonally and buyers were only willing to purchase enough wholesale asphalt to meet their immediate needs. Wholesale buyers were concerned about purchasing too much asphalt at a time when paving work is slowing down, and prices may drop seasonally.

There were no changes reported in Gulf coast retail asphalt prices. In southern Alabama, prices were in the $680-700 fob range, while in central and northern Alabama, prices were at $700-750 for PG 67-22.

The southern Louisiana and southern Mississippi range was at $685-700 fob. In southern Texas, prices were in the $625-650 fob range for PG 64-22. The Gulf coast asphalt supply situation was described as tight.

US Midwest
Midwest wholesale asphalt prices remained in the $625-700 fob range for PG 64-22. One supplier reported selling PG 58-28 at a $20 premium over PG 64-22.

With light product margins improving, refiners had increased their crude runs and were making more asphalt, resulting in increased availability of wholesale asphalt in the region and easing the regional supply tightness. Local marketers reported that paving asphalt demand remained strong even at the higher price levels that materialized in July and early August.

A Midwest refiner sold 120,000-140,000bl of roofing flux for September delivery at $675 fob, leaving the price unchanged from August. Strong demand for flux was the main reason for price stability.

Midwest asphalt retail prices were relatively stable. PG 58-28 was reported to have a retail premium over PG 64-22 of $30-40, according to one local supplier.

Prices in the Chicago area were over $700 fob for PG 64-22, while central Illinois prices were at $700. In Minneapolis-St Paul, Minnesota, prices were in the $650-700 fob range.

Detroit, Michigan prices were at $675 fob for PG 64-22, while northern Ohio prices were at $695 fob. Northern Indiana prices were at $675, while Indianapolis prices were at $685 fob. Southern Kentucky and Tennessee prices were mostly in the low $700s, according to one source.

US Rocky Mountain & West coast
Rocky Mountain wholesale asphalt prices remained in the $630-700 fob range for PG 64-22. One wholesale asphalt buyer reported that it was buying wholesale asphalt at $680-700 fob, the price range necessary to compete with coker economics in the Rocky Mountain region. One buyer stated that it was able to get the asphalt it wanted if it was willing to pay the coker economics value.

There was wholesale asphalt available from the Canadian Rocky Mountain region, with prices within the range of the US Rocky Mountain region.

One wholesale buyer commented that even if Midwest wholesale prices slipped, it expected to stay with Rocky Mountain product because of the lower freight to its terminal locations compared with the Midwest. Buyers also commented that security of supply is outweighing price this paving season.

In Montana, Wyoming and Colorado, retail wholesale prices were reported to be at $600-650 fob for PG 64-22 and PG 58-28.

In the Phoenix market, one supplier had its price at the $810 fob level for PG 70-10, with northern Arizona at $885 fob for PG 64-22. In Las Vegas, Nevada prices were in the range of $725-850 fob, depending on the supply source, for AC-30 Table II.

In Portland, Oregon, PG 64-22 asphalt prices were holding in the $750-800 fob range. Prices had increased up to $800 fob on 15 August as a result of the higher cost of replacement barrels. Demand was reported to be good for this time of year. PG 70-22 had a $10 premium over PG 64-22.

Asphalt prices remained strong in southern California, with one supplier at $775 fob for PG 64-10 and $785 for PG 70-10. One marketer stated that southern California was at $750+ for PG 64-10.

A northern California supplier raised its prices to $700 for PG 64-10 and PG 64-16 on 23 August. The supplier stated that its price increase was based on long-term production costs and not on competitive pressures. The supplier informed its customers that it was moving its prices up to $750 on 1 September. Polymer modified grades, PG 64-28 and PG 58-34 were at $900-910 in northern California.

Asphalt demand has been strong in California, with local refiners running at full capacity to meet the needs of the market.

Canada
The Ministry of Transportation in Quebec (MTQ) held its bid for September volumes on 25 August. There were only three suppliers of the five market players that participated in the bid. PG 58-28 was bid at C$960 ($900) and C$953, with C$953 the winning bid. This compared with a winning bid of $840 for the prior month's MTQ bid for PG 58-28.

There was only one bidder for PG 58-34 at C$1,060. There were two bidders for PG 64-28 at C$1,020 and C$992.75, with the latter the winning bid. Only one supplier bid PG 64-34 with a price of C$1,120. PG 70-28 was bid at C$1,120 and C$1,072.75, with the latter the winning bid. PG 58-35 HRD had a winning bid of C$1,042.75, and a second bid for C$1,090. Both tight asphalt supply and high prices for polymer contributed to the higher bids on this tender.

Based on these new MTQ bid results, two local suppliers raised their posted prices in eastern Canada (see table below). One supplier raised its postings on 28 August to C$978 from C$875, an increase of C$103. Premiums for other grades widened, with PG 64-28 carrying a C$47 premium compared with the previous C$40. Similarly, the premium for PG 58-28 widened to C$107 compared with the previous spread of C$80, and PG 64-34 and PG 70-28 premiums increased to C$167 instead of C$140. Another supplier informed customers that it was raising its posted prices on 1 September by C$125 to C$977.

There was more asphalt supply available from western Canada, with some deals reported for September. The deals were done within Argus' Rocky Mountain rail range of US$630-700 fob. Western Canadian refiners were reported to be running at full capacity to capture improved margins for asphalt.

There were a few jobs bid in Saskatchewan and Manitoba over the past couple of weeks, with bids around the C$800/t level, fob the supply source, for Pen 150-200.

A recent job in the southwestern section of Manitoba requiring Pen 200-300 was taken at C$879 fob the closest supply source. Typically, Pen 200-300 has about a C$10-15 premium over Pen 150-200, but the wider than normal premium was the result of the current limited availability in inventory of Pen 200-300.

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13/05/25

US budget bill would prolong 45Z, boost crops

New York, 13 May (Argus) — A proposal from House Republican tax-writers would extend for four additional years a new tax credit for low-carbon fuels and adjust the incentive to be more lenient to crops used for biofuels. Republicans on the House Ways and Means Committee on Monday introduced their draft portion of a far-reaching budget bill, which included various changes to Inflation Reduction Act clean energy subsidies. But the "45Z" Clean Fuel Production Credit, which requires fuels to meet an initial carbon intensity threshold and then ups the subsidy as emissions fall, would be the only incentive from the 2022 climate law to last even longer than Democrats planned under the current draft. The proposal represents an early signal of Republicans' plans for major legislation through the Senate's reconciliation process, which allows budget-related bills to pass with a simple majority vote. The full Ways and Means Committee will consider amendments at a markup this afternoon, and House leaders want the full chamber to vote on the larger budget bill before the US Memorial Day holiday on 26 May. Afterwards, the proposal would head to the Republican-controlled Senate, where lawmakers could float further changes. But the early draft, in a chamber with multiple deficit hawks and climate change skeptics that have pushed for a full repeal of the Inflation Reduction Act, is remarkable for not just keeping but expanding 45Z. The basics of the incentive — offering benefits to producers instead of blenders, throttling benefits based on carbon intensity, and offering more credit to sustainable aviation fuel (SAF) — would remain intact. Various changes would help fuels derived from US crops. The most notable would prevent regulators measuring carbon intensity from considering "indirect land use change" emissions that attempt to quantify the risks of using agricultural land for fuel instead of food. Under current emissions modeling, the typical dry mill corn ethanol plant does not meet the 45Z credit's initial carbon intensity requirement — but substantially more gallons produced today would have a chance at qualifying without any new investments in carbon capture if this bill were to pass. The indirect land use change would also create the possibility for canola-based fuels, which are just slightly too carbon-intensive to qualify for 45Z today, to start claiming some subsidy. Fuels from soybean oil currently qualify but would similarly benefit from larger potential credits. Still, credit values would depend on final regulations and updated carbon accounting from President Donald Trump's administration. Since the House proposal does not address the current law's blunt system for rounding emissions values up and down, relatively higher-carbon corn and canola fuels still face the risk of falling just below 45Z's required carbon intensity threshold but then being rounded up to a level where they receive zero subsidy. The House bill would also restrict eligibility to fuels derived from feedstocks sourced in the US, Canada, and Mexico — an attempt at a middle ground between refiners that have increasingly looked abroad for biofuel inputs and domestic farm groups that have lobbied for 45Z to prioritize US crops. That language would make more durable current restrictions on foreign used cooking oil and significantly reduce the incentive to import tallow from South America and Australia, a loss for major renewable diesel producers Diamond Green Diesel, Phillips 66, and Marathon Petroleum. The provision would also hurt US biofuel producer LanzaJet, which has imported lower-carbon Brazilian sugarcane ethanol as a SAF feedstock to the chagrin of domestic corn ethanol producers. The bill would also require regulators to set more granular carbon intensity calculations for different types of animal manure biogas projects, all of which are treated the same under current rules. Other lifecycle emissions models treat some dairy projects at deeply negative carbon intensities. Those changes to carbon intensity calculations and feedstock eligibility would kick in starting next year, meaning current rules would remain intact for now. The proposal would however phase out the ability of clean energy companies without enough tax liability to claim the full value of Inflation Reduction Act subsidies to sell those tax credits to other businesses. That pathway, known as transferability, would end for clean fuel producers after 2027, hurting small biodiesel producers that operate under thin margins in the best of times as well as SAF startups that were planning to start producing fuel later this decade. Markets unresponsive, but prepare for new possibilities There was little immediate reaction across biofuel, feedstock, and renewable identification number (RIN) credit markets, since the bill could be modified and most of the changes would only take force in the future. But markets may shift down the road. Limiting eligibility to feedstocks originating in North America for instance could continue recent strength in US soybean oil futures markets. July CBOT Soybean oil futures closed 3pc higher on Monday at 49.92¢/lb on the news and have traded even higher today. The spread between soybean oil and heating oil futures is then highly influential for the cost of D4 biomass-based diesel RIN credits, which are crucial for biofuel margins and have recently surged in value to their highest prices in over a year. The more lenient carbon accounting will also help farmers eyeing a long-term future in renewable fuel markets and will support margins for ethanol and biodiesel producers reliant on crops. Corn and soy groups have pushed the government for less punitive emissions tracking, worried that crop demand could wane if refiners could only turn a profit by using lower-carbon waste feedstocks instead. The House bill, if passed, would still run up against contradictory incentives from other governments, including SAF mandates in Europe that restrict fuels from crops and California's efforts to soon limit state low-carbon fuel standard credits for fuels derived from vegetable oils. By Cole Martin and Matthew Cope Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Mexico industrial production contracts in March

13/05/25

Mexico industrial production contracts in March

Mexico City, 13 May (Argus) — Mexico's industrial production contracted by 0.9pc in March from the previous month, as declines in mining and manufacturing were only partly offset by continued growth in construction. The drop was not enough to undo the 2.2pc increase in February — the sharpest monthly expansion in four years — as manufacturers ramped up output ahead of incoming US tariffs. The March industrial production index (IMAI), published by statistics agency Inegi, was higher than Mexican bank Banorte's forecast of a 1.4pc decline. Banorte noted signs of volatility affecting manufacturing and other sectors because of a complex trade outlook. Manufacturing contracted 1.1pc in March after expanding 2.9pc in February. The impact varied across subsectors, with metal goods down 5.5pc and transportation, including auto production, down 1.1pc. Volatility may ease in the coming months as US tariff policies become clearer and Mexican officials push to preserve the country's trade edge under US-Mexico-Canada (USMCA) free trade agreement rules, Banorte said. Construction expanded 0.8pc in March, following increases of 3.4pc in February and 0.5pc in January, driven by higher public investment tied to President Claudia Sheinbaum's economic plan, "Plan Mexico." Analysts see the plan as a catalyst for continued growth in construction this year, with measures including greater domestic content in public purchases, public-private participation in infrastructure projects and a target of $100bn in private infrastructure investment for 2025. These effects could be amplified by aggressive interest rate cuts from the central bank. Mining contracted by 2.7pc in March, returning to negative territory after a slight 0.1pc uptick in February. Oil and gas output also contracted 2.7pc after rising 1.0pc the month before, while non-oil mining contracted 4.3pc in March after a 0.6pc increase in February. By James Young Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Naphtha no longer competitive feedstock: Braskem

12/05/25

Naphtha no longer competitive feedstock: Braskem

Sao Paulo, 12 May (Argus) — Brazil-based petrochemical producer Braskem is pursuing a strategic shift in polymers production by favoring natural gas liquid (NGL) feedstocks and moving away from naphtha. Naphtha is no longer a competitive feedstock in the petrochemical sector, driving the need for greater flexibility in raw material sourcing, chief executive Roberto Ramos said Monday on the company's first-quarter earnings call. The transition to lighter feedstocks is part of a broader initiative to enhance efficiency, reduce costs, and improve competitiveness amid evolving global petrochemical dynamics, Ramos said. The company's plan focuses on increasing the use of ethane and propane as primary feedstocks in Mexico and Brazil. In Mexico, Braskem has inaugurated an ethane import terminal, which will provide a stable supply to its operations. The facility has the capacity to store 80,000 b/d of ethane, while the polyethylene (PE) plant processes 66,000 b/d. This surplus storage has prompted considerations for a new PE unit in Mexico to maximize the available feedstock. In Brazil, Braskem aims to reduce reliance on naphtha-based PE production by integrating more natural gas-derived inputs. The company is evaluating projects to utilize feedstocks sourced from shale gas extracted in Argentina's Vaca Muerta formation. The petrochemical complex in Rio Grande do Sul, which operates with a mixture of naphtha and natural gas, is among the facilities targeted for increased gas utilization. Braskem's Rio de Janeiro facility is also undergoing expansion of its gas-based assets, adding two new furnaces that crack ethane and propane to increase capacity to 700,000 t/yr. This increased production is anticipated to lower unit production costs and improve profitability. The move to gas-based production is expected to optimize operations and align Braskem's facilities with cost-effective supply chains, Ramos said. The shift comes as global trade dynamics continue to influence raw material availability. While US-China trade agreements have temporarily eased tariff pressures, Braskem is trying to position itself to navigate long-term supply chain uncertainties by diversifying its production inputs. Ramos has also indicated potential investments in ethanol dehydration technology, which would allow select facilities to convert ethanol into ethylene, further supporting PE production with an alternative renewable feedstock. Production and sales Braskem said its first-quarter domestic resin sales fell by 4pc from the same period in 2024, but sales were little changed from the prior quarter. Domestic resin sales totalled 807,000 metric tonnes (t) in the first quarter, down from 839,000t a year earlier. Resin sales volumes remained in line with the fourth quarter last year, but the company highlighted a quarter-on-quarter increase in PE and polypropylene (PP) sales volumes of 2pc and 3pc, respectively, offset by a 16pc reduction in PVC sales. In Mexico, Braskem Idesa's PE sales fell by 11pc from the same period in 2024 and by 5pc quarter-on-quarter, as the company is looking to manage inventory ahead of a planned maintenance shutdown in the second quarter. The plant utilization rate reached 79pc, rising from the fourth quarter on higher ethane availability through the Fast Track solution. But utilization fell by four percentage points year-on-year, mainly due to reduced supply of ethane from Mexico's Pemex. Braskem posted a first-quarter profit of $114mn, rebounding from a loss of $273mn a year earlier and a loss of $967mn in the fourth quarter last year. By Fred Fernandes Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

EU, UK diesel imports from Mideast, India fall in April

12/05/25

EU, UK diesel imports from Mideast, India fall in April

London, 12 May (Argus) — Arrivals of diesel and other gasoil in the EU and UK edged lower in April, with high imports from Saudi Arabia's port of Yanbu not fully making up for lower supply from the Mideast Gulf and India. Data from Vortexa show total arrivals at 4.3mn t, lower by 3pc from March on a daily average basis and by 7pc on the year. The Mideast Gulf is the region that has supplied the most to the EU and UK so far this year, stepping up to fill a gap created by weak US arrivals. But market participants said the arbitrage from the Mideast Gulf was shut for most of April. Arrivals from the Mideast Gulf were around 1mn t, dropping by 24pc on a daily average basis from March but only marginally falling from April 2024. Exports from the region probably fell because of maintenance at the 400,000 b/d Rabigh refinery. Geopolitical tensions may have harmed transit through the Bab el-Mandeb strait. The EU and UK imported the largest amount from Saudi Arabia, at 1.3mn t or around 29pc of total arrivals. Around 68pc of Saudi Arabian arrivals, or about 780,000t, came from the Red Sea port of Yanbu, the largest amount from there since December 2020. Yanbu is just south of the Suez Canal, and market participants often treat it similarly to a Mediterranean port when calculating arbitrage economics. Arrivals from India dropped sharply in April, again probably driven by poor arbitrage economics. Arrivals fell by 45pc on the month on a daily average basis and by 33pc on the year, to 455,000t. Only five tankers arrived in the EU and UK from India, compared with 13 in April 2024. Reliance's 1.36mn b/d Jamnagar refinery conducted maintenance on a crude unit in April, and domestic demand reached an all-time high. Imports from the US, the EU's and UK's largest supplier in 2024, remained muted. Arrivals rose by 17pc on the month on a daily average basis to 562,000t, but were still only half the amount of April last year. Spain was the largest EU/UK importer, with 745,000t, the highest since May 2024. Imports may have risen because of maintenance at Repsol's 135,000 b/d Puertollano and 180,000 b/d Tarragona refineries . German arrivals were 493,000t, the highest since January 2023, up by 13pc on the year and more than double levels of March. Shell began to close its 147,000 b/d Wesseling refinery in March, and a turnaround took place at the Bayernoil consortium's 215,000 b/d Vohburg-Neustadt refinery. Demand stepped up, with households taking advantage of lower prices to stockpile product. By Josh Michalowski Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

India, Pakistan reach US-mediated, fragile ceasefire

11/05/25

India, Pakistan reach US-mediated, fragile ceasefire

Dubai, 11 May (Argus) — A US-mediated ceasefire reached on Saturday between nuclear-armed neighbours India and Pakistan is still holding, following four days of intense fighting. "After a long night of talks mediated by the United States, I am pleased to announce that India and Pakistan have agreed to a FULL AND IMMEDIATE CEASEFIRE," US president Donald Trump posted on his social media platform Truth Social on Saturday. India and Pakistan will now start negotiations on a broad set of issues at a neutral site, US secretary of state Marco Rubio said on social media platform X. India's military on 7 May launched attacks against targets in Pakistan and Pakistan-administered Kashmir in retaliation for an April terrorist attack that killed dozens. But by Saturday, the two countries seemed to be edging toward all-out war, as their militaries targeted each other's bases. India's foreign minister Subrahmanyam Jaishankar confirmed the ceasefire, saying on X that "India has consistently maintained a firm and uncompromising stance against terrorism in all its forms and manifestations. It will continue to do so." Pakistan "responded positively to the ceasefire proposal for regional and global peace, and its people and I hope that dialogue will now be chosen for resolution of water and Kashmir disputes," Pakistan's prime minister Shehbaz Sharif said in a televised address. Trump also praised leaders of both countries for agreeing to halt the aggression and said he would "substantially" increase trade with them, although this was "not even discussed". Kashmir is a contested area between India and Pakistan, and the two have twice gone to a war over the region. Fear of the conflict spreading roiled global financial markets. India is the region's second-biggest oil buyer after China — importing around 4.5mn b/d last year — and a major customer for other commodities, including LNG and coal. Pakistan also imports fertilizers, coal, oil products and LNG. The escalation between the two severely limited direct trade between them. Airlines in the region as well as some Mideast Gulf carriers rerouted or cancelled flights to avoid Pakistani airspace. But the Pakistan Airports Authority said on Saturday that "Pakistan's airspace has been fully reopened for all types of flights." By Bachar Halabi Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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