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.