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Virtually all producers of refined coal tar sealer encountered shortages or delays in RT-12 supply last year, resulting in shortages or delivery delays of refined coal tar sealer to contractors. This is the fourth year in a row the sealcoating industry has experienced at least a mild disruption in delivery of refined coal tar sealer, and while factors have varied year to year, they all point back to the availability of crude tar.

Crude tar, a byproduct of the coking process used in the production of steel, has been the backbone of the sealcoating industry for most of the country for the last 50 years. (Asphalt-based sealers, a byproduct of the petroleum refining process, have traditionally dominated sealcoating markets west of the Rocky Mountains, though asphalt sealer is steadily working its way into sealcoating markets throughout the country.)

But the story in 2006 – and probably for 2007 and beyond – is refined coal tar sealer. What's happened to its production? Why have there been shortages the last few years? What's likely to happen with coal tar in 2007 and, perhaps more importantly, beyond 2007?

Because looking back is always easier than looking forward we can likely explain the availability issues that plagued RT-12 producers, sealer producers, and sealcoating contractors throughout last year. Looking ahead, however, gets hazier as the number of variables that can impact the coal tar sealcoating industry become greater and less predictable.

Crude coal tar supply

Crude coal tar is a byproduct made when converting metallurgical coal into metallurgical coke, which is then sold to steel producers. The crude coal tar is sold to processors who distill it and re-sell it to other industries. Most crude tar distillers and sealer producers say the size of the crude tar pie has remained stable over the last few years.