Pricing from most major manufacturers of commercial valve products was increased 1Q18 as a result price increases for raw materials starting in late 2017. Suggest exercising caution for imported product from China, which has seen the U.S. dollar devalued by (6%) since the beginning of 2018. The increases put into place prior did not foresee the full impact of this additional cost at the time of the announcements. As this cost is unavoidable, unless the currency recovers, to all those who bring product from China, it’s reasonable to expect to see increases in those commodities over the coming months.
Unlike raw material cost increases, this increase is on the entire product and is only recovered with a corresponding increase to the market. And with regard to cast and forged steel product, manufactured valves are not currently targeted in the HTS codes announced by President Trump. Some are taking a risk-averse approach and holding back while awaiting final Section 232 determinations. Availability of supply will continue to pose challenges for distributors.
Commodity metal costs remain high through mid-March. Although copper, zinc and nickel all have declined somewhat over the past month, they remain up sharply for the year.
The market outlook remains steady. For January, construction spending on residential activity was up 0.2% in comparison to December and was up 4.3% year-over-year. Commercial (building) construction was down (0.2%) over December and up 4.7% year-over-year.
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.
This information is an example of how ASA’s IPD manufacturer and distributor members are constantly looking ahead to ensure you have information and resources you need to be successful. Learn more at www.AdvanceYourAbility.com.