00:00The black mass pouring out of this construction machine is causing serious problems for road construction companies across Germany.
00:08The price of asphalt is skyrocketing due to the war in Iran.
00:11The road surfacing material contains the binding agent bitumen, which is derived from crude oil.
00:18The price for a ton has just doubled to 700 euros.
00:23Such an enormous price surge, especially in light of a war, is impossible to calculate.
00:28That's why for the time being we'll have to absorb the costs ourselves.
00:35That's because contracts for road construction and asphalt delivery are typically negotiated months in advance, often with fixed prices.
00:44At the mixing plant of Kurpfälzische Asphaltwerke in Bruchsal in southern Germany, they produce 70,000 tons of asphalt every
00:52year.
00:54A tanker truck carrying bitumen has just arrived.
00:57Due to the high cost of this binding agent, the price of the finished asphalt is rising by 20 to
01:0440 percent.
01:05At this point, production is no longer profitable.
01:12Once the construction companies and our company can no longer bear the cost, the entire system will grind to a
01:19halt.
01:20Because given the slim margins we operate with in the asphalt business, a price increase of 20 to 40 percent
01:27is unsustainable.
01:29In other words, no more roads will be fixed.
01:32And smaller construction firms in particular even face an existential threat.
01:38At the Chamber of Industry and Commerce, they know that massively rising raw material prices are impacting all sectors of
01:45the economy.
01:46The spring survey reveals most German companies perceive greater global risks now than they did last fall due to higher
01:54prices and to disrupted supply chains like the Strait of Hormuz.
02:02German companies are shielding themselves against global crises through diversification efforts.
02:08They're seeking out new suppliers.
02:10They're establishing their own local operations in markets where conditions may be more favorable.
02:15And generally speaking, they're looking for new sales opportunities.
02:22However, as long as the conflict in Iran goes on, prices could continue to rise.
02:28For energy, for crude oil and in the road construction sector, for bitumen and asphalt as well.
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