Asphalt prices in 2025 experienced considerable volatility, closely tracing movements in crude oil, the primary feedstock for asphalt production through fractional distillation processes. The year began with elevated price levels, reflecting firm crude oil valuations in global markets. However, prices declined progressively as the year advanced, driven by weakening crude oil benchmarks amid shifting supply-demand dynamics.
The first quarter witnessed relatively stable conditions, but subsequent periods saw increased pressure on asphalt valuations. Mid-year brought pronounced downward momentum as crude oil prices softened due to demand concerns in major consuming regions and adequate supply availability. A brief recovery phase emerged as seasonal construction activity picked up in key markets, temporarily supporting asphalt demand and prices. Trade flows remained active, though price competitiveness varied across regions based on local crude oil pricing and refinery margins.
The latter part of the year saw renewed weakness, with asphalt prices declining further in line with sustained crude oil price erosion. Supply remained sufficient to meet downstream demand from road construction and infrastructure projects, while crude oil market sentiment remained cautious due to macroeconomic uncertainties.
Analyst Insight
According to Procurement Resource, looking ahead, asphalt prices are expected to remain sensitive to crude oil market developments. Supply-demand fundamentals suggest modest stability, though ongoing volatility in energy markets may continue to influence near-term pricing trends.
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The asphalt market in H2’24 experienced significant volatility, characterized by complex economic and regulatory challenges. The industry witnessed notable price pressures, particularly in regions like Iraq, where governmental policy changes dramatically impacted production costs. Asphalt manufacturers faced substantial challenges from escalating raw material prices, which threatened operational sustainability and market competitiveness.
In South Africa, the market demonstrated resilience through strategic investments. The acquisition of Much Asphalt by Old Mutual Private Equity and Sphere Investments signalled confidence in the sector's potential, despite underlying economic uncertainties. This transaction highlighted the industry's ongoing consolidation and strategic repositioning.
The Iraqi market specifically encountered severe disruptions, with asphalt factory owners protesting significant increases in raw material costs. These price hikes threatened production capabilities, potentially leading to factory closures and considerable job losses across Nineveh and Kirkuk governorates. Towards the end of H2 2024, the asphalt industry experienced continued market recalibration, with manufacturers seeking innovative strategies to mitigate rising production expenses.
Asphalt refers to a semi-solid form of petroleum that is sticky, black, and highly viscous in nature. It is classified as a pitch. It may be found in natural deposits, like the Pitch Lake, or may be obtained as a refined product. It is most widely used for road construction, where it is used as a binder to create asphalt concrete upon its combination with aggregate particles. Its other significant application involves its use in the production of bituminous waterproofing products, like roofing felt, flat roofs sealant, etc.
Binder, Construction and roofing applications, Pipe and cable coatings, Paints, Tile underlying waterproofing, Newspaper ink production, Airport runways, Footways and pedestrian ways
Bitumen
China Petroleum & Chemical Corporation (or Sinopec), Elead Ingoton Mobil Corporation, Nynas AB, Royal Dutch Shell Plc
CurrencyUS$ (Data can also be provided in local currency)
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Asphalt is produced by separating it from other components in crude oil including naphtha, gasoline and diesel, through the process of vacuum distillation. In this process, it is obtained as the "heavy" fraction with a boiling point greater than 500 °C.
Rakesh Nandi
Team Lead - Market Research
Leading procurement-focused market intelligence across chemicals, composites, advanced materials, aerospace & defense, and energy, delivering commodity forecasts, supply chain analysis, and competitive benchmarking to support sourcing decisions.
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This report provides the cost structure of propane production by the petroleum refining process. In this process, crude oil is separated into oil and wet gas via gas trap.
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