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BASIC CONSTRUCTION BLOG

Need to Know More About What Drives the Cost of Asphalt Production?

Posted by Derek Patterson   9/8/15 10:30 AM

You’ve come to right place.

basic-blog-1Asphalt may only be one word, but it’s a substance made of many components. Each has their own impact on the cost to produce asphalt, and ultimately the price asphalt customers will pay to purchase their asphalt. The method to produce asphalt, the raw materials involved, even the price of the fuel used to transport it all have a role to play. 

How is asphalt produced?

Asphalt is generally produced in a continuous mixing plant which uses fuel (natural gas, etc.) to dry the aggregates (sand and stone) and then mix them with liquid asphalt and crushed recycled asphalt pavement (RAP). 

The mix is continuously fed through the mixing process and then transferred to a slat elevator, which places the material in a storage silo for loading of trucks and storage.

What raw materials are used in the process?

Sand and stone are combined with liquid asphalt, RAP, and an anti-stripping chemical to produce the final product we commonly refer to as “asphalt”.

What’s the best way to determine a reasonable price for asphalt?

 Pricing is dependent on several factors. Cost of local materials, freight and the price of liquid asphalt. And similar to the cost of oil and petroleum, the cost of asphalt may be materially different from month to month across the country. Regionally, the cost of raw materials has an impact, and then the freight and fuel to transport those materials.

This is why it’s great to work with a local asphalt company. Moving asphalt is expensive. And as goes the price of fuel, generally so goes the price of your asphalt, so don’t forget about fuel prices when making your next purchase. And remember to work with a local provider!

*Tip: To make sure you’re getting the best price on your asphalt, contact more than one experienced, trustworthy, local source for pricing.

What is the most efficient way to produce asphalt? 

Hands down, the most efficient way to produce asphalt is in a continuous mixing plant using natural gas as the fuel source. Warm mix technology that takes advantage of the maximum amount of RAP allowed is also critical to efficiency. VDOT allows between 30-35%.

*Point of interest: Availability of local materials has so much to do with the cost to produce asphalt that some companies even have their own sand pit to contribute to their asphalt production.

Knowing what goes into the cost of asphalt and being savvy enough to keep your eyes peeled for the right market conditions, (price of oil and petroleum) can help save on your next purchase.

Remember, to get the best price on asphalt, work with a local provider. You’ll avoid unnecessary fuel costs that way. And always be sure to check with at least three trusted providers before pulling the trigger on your next purchase!

 

 

Topics: Asphalt