- US Producer Prices for fittings and flanges on a national basis were up 4.1% Y/Y (5.2% in the last update) through March (latest available). They were flat month-over-month.
- Several factors continue to provide support for fitting and flange prices again in April. Demand remained steady in the US as upstream and downstream petroleum activity generally increased year-over-year. In addition, tariff and anti-dumping supply risk continues to add to price stability.
Key factors that could affect supply or price:
- However, near term sluggishness is still showing up in the latest Baker Hughes Rig Count for 04/12/19. The US experienced a mild 14-rig increase year-over-year; but Canada was down 36 wells over the last 12 months. The net difference is a change in North American rig counts of -22 Y/Y (same as in the last report). In the US, 18 of the “net new” rigs were oil-based and there was a drop of 3 that were gas. This should pick up in the coming months with challenges in Venezuela, moderate OPEC movement on curbing output, and a price-competitive US Permian market.