A number of factors continue to provide support for fitting and flange prices again in February. Demand remained steady in the US as upstream and downstream petroleum activity increased year-over-year. In addition, tariff and anti-dumping supply risk added to price stability.
The latest outlook from the Energy Information Administration shows that petrochemical demand will account for 33% of global oil consumption growth by 2030 and more than half of demand growth by 2050, surpassing oil use in fuel production for autos, trucks, and aircraft. The US will continue to be the premier producer of globally-leading petrochems and the development of infrastructure, production facilities, and distribution will make it a leading US growth sector.
US Producer Prices for fittings and flanges on a national basis were up 4.6% year-over-year through December (latest PPI data available). Year-over-year growth rates peaked in June and July of 2018 and remain at the upper end of a decade-high range - despite coming off of those highs hit last summer.
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.