Valves report: June 2018
Most of the commercial valve players have announced increases for mid-June and July 1. Business remains strong in many markets and demand is high. There still is uncertainty with respect to the whole tariff issue, material cost, material availability, exchange rates and most recently rising fuel costs.
With the increase in oil comes fuel surcharges on freight. Any continuation of rising oil may mean more in the way of surcharges or absorption through pricing.
Lead times continue to stretch out for forged and cast steel valves, but pricing has remained at beginning- of-year levels.
- Commodity metal costs remain high. Copper averaged $3.09/ lb. in May but is trading in the $3.25 range in mid-June.Steel, zinc and nickel and iron all are up sharply for the year.
- These elevated metal costs together with increases in freight, energy and other costs have resulted in another round of valve price increases.
- Apollo Valves implemented a June 11 general price increase.
- Most other major valve manufacturers have announced similar price increases, with early July 2018 being the typical effective date.
- Overall the market outlook remains steady.
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