Paving demand remains muted in the southeastern US following Hurricane Helene in September and ahead of Hurricane Milton expected to make landfall in Florida on Wednesday.
Some asphalt plants in Florida were heard shutting down ahead of Hurricane Milton. Ports on Florida's Gulf coast from Tampa to Fort Myers also closed today at 8am ET.
And in North Carolina, market participants expect paving work to be pushed to future dates as search and rescue operations continue in the wake of severe flooding cause by Helene.
Recent heavy precipitation in Florida, Georgia, the Carolinas, Tennessee and Virginia has also affected near-term demand. Parts of each state received 10-15 inches of rain over the past two weeks, according to the National Weather Service.
Retail asphalt prices in Tampa, Jacksonville, Atlanta, the Carolinas, Tennessee and Southeast Virginia declined by $5/st to $15/st on 4 October.
Longterm demand will likely be supported by federal emergency relief funding with budgets for state departments of transportation most likely unaffected by repair costs, according to some market participants.
The Federal Highway Administration (FHWA) released $100mn in funding to North Carolina for roads and bridges damaged by Hurricane Helene, $2mn to South Carolina and $32mn to Tennessee, according to FHWA press releases.
