Amid the ongoing global Coronavirus pandemic there is much uncertainty. The purpose of this communication is to address the status of our operation and to touch on recent volatility in the petroleum market and its effect on asphalt production.

As this situation continues to develop, our primary concern has been for the health and well-being of our employees and our valued partners. Daily operations at our plant in Commerce City are ongoing. We continue to manufacture and ship product on our normal schedule and will do so for long as we are allowed. In many markets, face-to-face contact between our sales reps and our customer base is no longer possible. Please rest assured that sales support is still available and will remain a top priority. Do not hesitate to call or email your regional rep or any of the folks at headquarters should you need assistance.

Secondarily, many of you may be aware of the falling prices at the gas pumps as Saudi Arabia and Russia flood the market with inexpensive crude while demand has fallen as more and more people stay home due to the pandemic. While the price of crude oil is a factor in determining the price of asphalt, it is not as simple as looking at a percentage drop at the pumps and applying it to the cost of roofing asphalt.

The main reason for this is the fact that automobile fuels and asphalt are made from very different crude stock. In fact, Refineries exist to produce fuel for vehicles, using 96-98% of crude stock to produce fuels leaving only 2-4% to account for manufacture of asphalt. Please rest assured that should the price of asphalt flux decline significantly, so too will the price of our products.

In the meantime, all of us at United Asphalts will continue our prayers of health and safety for all those reading this message.

Sincerely,

Janelle Sebring
Chief Executive Officer
United Asphalts