OTCPK:PILBF - Post by User
Comment by
aggmanon Nov 10, 2014 9:36pm
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Post# 23115775
RE:California Aggregate Pricing
RE:California Aggregate Pricing a very nice piece and post - thank you.
a few points:
- broadly under the category of common used aggregate: you have sand, alluvial gravels and crushed stones - most common are 57's or concrete stone (i.e. stone used in RMX concrete mix designs).
- PLS is more heavily weighted to sand - but there is more demand for their gravel (as stated on the call).
- yes: as this piece indicates you have specifica mkts in call, San Diego, you can divide LA, Inland Empire, OC into 6 trading blocks; then you have the central valley, you have mid-state costal markets and then you have the Bay, Sacremento and so on.
- what an academic/geologic paper like this probably does not dare to interpret is industry structure, industry consolidation, degree of vertical integration, nature of competition, and to a lesser degree transportation economics - this is all very important stuff where pricing decisions get made - that's competitive intel where entry level pricing is understood, where degree of downstream outlets - per agg source are understood. you are not going to get that interpretted by Prof Clikenbeard.
You know: LA is a higher priced market - I was surprised by Herb's comment that pricing is going to be slightly better in PoLB - I think he is pricing for entyr, I was a bit dissappointed by that - as I believe he should be at $17-$18/ton in PoLB.