Inventory levels and availability for A105 BW fittings and flanges remain good. Activity has remained steady even amid issues that include tariffs, dumping suits and uncertainty for future projects. Many people are reporting that projects have remained on a track to move forward even with the additional costs of products over the last 2 quarters.
The most recent risk of doubling of tariffs on steel from Turkey has caused new concerns. The market for A105 BW fittings and flanges has been impacted by the lawsuits for dumping and countervailing that were filed last year by several U.S. producers. There are no reports of imminent price increases above current levels. If more projects move forward there could be some additional demand on supplies.
Most of the upstream activity has been driven by increased activity in the Permian Basin. According to the Baker Hughes Rig Count for 08/10/18, North American rig counts are up 97 compared to August 2017. 95% of these are oil rigs with the Permian Basin accounting for nearly all of the increase. The two areas specifically are Texas, up 14% to 522 rigs and New Mexico up 75% to 107.
WTI Crude Oil prices as of 08/15/18 posted on oilprice.com are at $65.33 per barrel compared to $46.78 one year ago.
Natural Gas prices on the Henry Hub Listing are at $2.96 per Dekatherm for 08/15/18 compared to $2.89 a year ago.
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.
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