The Portland Cement Association (PCA) examined the use of concrete in the paving market for which it makes up an average of 14-15% of the market share of state DOT highway construction and maintenance, but only an estimated 6-8% of all paved roads in terms of lane miles. The Paving Report takes a look at the use of concrete, it's market share, and price impacts.
There has always been a debate over whether to use concrete or asphalt to pave roads and the argument for concrete has gained traction as it has become the cost-effective option. An increase in oil prices have led to a greater price for asphalt as a result:
The relative insensitivity to the sharp oil price decline suggests that there are other factors in play in determining asphalt prices. On the supply side, there are a number of factors leading to asphalt’s resistance to price declines. These include feedstock constraints such as the increased use of cokers and the rise in lighter, sweeter domestic crude availability. Another possibility features the lack of robust competitive conditions surrounding the paving industry.