News and Events
Asphalt Roofing Products
As you have read and seen, crude oil is trading at record highs, recently closing at $72.75. Some industry experts are predicting that with the busy summer driving season fast approaching that crude could even hit $100.00 per barrel. These skyrocketing prices are now affecting roofing asphalt in two significant ways.
1. Prices for asphalt products are increasing; both IKO and Bitumar have announced a 15% price increase for May 15, another 15% increase for July 1 and warned of another 20% increase by Labour Day.
2. Major asphalt refiners are moving away from coking asphalt and heavy crude products and instead investing in their refining capabilities to coke light crude products where the yield per barrel is much greater. This industry paradigm shift is creating shortages of asphalt and both IKO and Bitumar have placed all distributors on allocation.
We strongly encourage every roofing contractor to use extreme caution when closing asphalt projects and consider contract escalation clauses in the event of project delays. Other asphalt based products including felts, modified rolls and pail goods are all expected to see double digit increases within the next 60 days.
We thank you for your cooperation and understanding and we look forward to working together in the months ahead.