US asphalt demand to grow

Demand for asphalt in the US construction sector is expected to grow 7.4%/year to 31.6 million tonnes in 2015, according to research by the 2821 Freedonia Group. This growth will show a rebound from the 2005-2010 period, when consumption declined sharply due to the recession. The Cleveland-based industry market research firm has produced its new study, Asphalt, which shows that paving products accounted for 80% of asphalt consumption in 2010. The report continues that demand for asphalt paving products will benefit from an expected increase in federal and state spending on highway and road construction. There will be continued growth from the low levels of 2010, when high asphalt prices led to a slowing in paving activity and a greater emphasis on repair as opposed to road replacement. Overall, demand for asphalt in paving is expected to increase 7.8%/year to 25.7 million tonnes in 2015.