Due to material and other cost drivers, a round of price increases commenced in September-October averaging 4.0-5.0 percent and primarily affecting brass, bronze and iron valves. Also, there is continued volatility in commodity metal costs. At the time of this writing in mid-October, copper increased 7.0 percent for the month and stands at 45.0 for the year. Zinc and nickel are up 37.0 percent and 12.0 percent, respectively, for the year. In particular, the price of copper has a significant effect on costs, and it is continuing to rise - currently at its highest level since February, 2014.
Overall, the market outlook remains steady. For August, construction spending for residential activity was up 0.5 percent over July and up 11.3 percent year-over-year. Commercial (building) construction was up 2.1 percent for the month and 2.4 percent year-over-year.
Worth noting is one PVF distributor has reported seeing lead times lengthening with two of its major valve suppliers due to a recent uptick in business and compounded by personnel cutbacks over the last 18 months due to reduced business levels in the second half of 2015 as well as in 2016.
The American Supply Association (ASA) and its Industrial Piping Division (IPD) is the national organization serving wholesaler-distributors and their suppliers in the industrial and mechanical pipe-valve-fitting industry. As a powerful alliance of channel partners, we provide a forum for your upstream trading partners to exchange critical information and address key issues.
In particular, ASA’s IPD members constantly check the pulse of the materials and commodities they proudly supply to you. ASA’s IPD members are knowledgeable industry leaders, and those who volunteer their service on the IPD Executive Council compile and prepare the IPD Commodity Reports. The Reports contain some of the most current and qualified market data and information available from the industry’s leading manufacturers and distributors about emerging trends and other price-influencing actions and events.