Current situation:
- Producer prices for HDPE pipe were down 1.2% M/M (-.6% last month) and were down 1.4% Y/Y (down .7% Y/Y last month). Plastic pipe fittings and unions were up 2.1% M/M (down .6% last month), and up 6.7% Y/Y (up 5.4% last month).
- The HDPE industry is still expected to grow at a 3.8% CAGR from 2019-2024 according to Lucintel.
Key factors that could affect supply or price:
- PVC resin producers have a $0.02/lb. increase on the table for June, which would translate into a 7%-8% increase in prices. The PVC pipe producers are unanimous in being skeptical of how much will stick past 30 days, maybe half that if the weather doesn’t improve. Markets have been soft over the past couple months and margins have taken a hit. However, demand has shown signs of picking up in May on both the domestic and import fronts, which is encouraging to everyone as it could provide the real catalyst for a price increase to stick, with good weather in June and July.
