Today NYMEX Crude Oil closed at $37.25. This is over $100 less than the peaks of the summer months. In mid-2008 KTM Roofing was fast to respond to the impact of the changing price in oil commodities.
June 2008 Quote:
“From January 2008 to June 2008 our cost for asphalt shingles has gone from $30 to $46 for the same roof coverage area,” explains Tim McLoughlin, President of KTM Roofing. “A portion of this cost will need to be passed on by KTM and all roofing companies. Unlike the price of oil, once the cost of shingles goes up, it historically stays at that level. Asphalt shingle prices do not fluctuate like oil prices do.”
Knowing that asphalt shingles are sensitive to raising oil costs it would be logical to expect asphalt shingle prices would decrease as a reaction to the decreased trading price of oil. This is not so. Asphalt shingles have historically increased year after year. This year it is expected to be no different and various industry suppliers of Asphalt shingles have hinted that come march that roofing companies could expect an increase in asphalt shingle prices.
This can be seen as frustrating to the consumer and perhaps an unneccessary price increase. With asphalt shingles heavily dependent on crude oil from Venezuela, it would be expected that the estimated 2009 prices would remain stable, if not decrease because of market competition. It does not appear this will be the case. This is a story KTM will be continuing to monitor in the coming months.
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