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Concrete Side-Steps Some Oil Price Hikes
Monday, 14-Jul-2008 3:05PM United Press International
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ST. LOUIS, July 14 (UPI) -- U.S. concrete prices have held relatively steady in the past year compared with the rival road-building substance asphalt, industry observers said.

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Road projects one would assume would be paved over might, instead, be poured, as the cost of a basic raw material for asphalt has fallen victim to rising oil prices.

Petroleum-based liquid asphalt may be scraped out of the bottom of barrels after the rest of the crude oil has been removed, but the price is still going up, the St. Louise Post-Dispatch reported Monday.

Asphalt priced at $39 a ton a year ago, is now priced at $59 a ton, the report said.

A yard of concrete, equal to two tons of asphalt, has averaged $75 a yard over the past year, the report said.

Contractors at J.M. Marschuetz Construction Co. of Eureka, Mo., recently won a $4.7 million highway contract, outbidding the asphalt companies involved.

"Who would have thought in a million years that concrete would cost less than asphalt?" asked Jason Marschuetz, the company's vice president. "The oil prices are ultimately helping us because even though we're getting hammered once -- for diesel -- the asphalt companies are getting hammered twice - for diesel and asphalt."

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