Current situation:

  • Producer prices for HDPE pipe were up 1.6% M/M (down 2.0% last month) and were down 2.0% Y/Y (down 2.6% Y/Y last month). Plastic pipe fittings and unions were up 0.4% M/M (down 0.8% last month) and were down 0.6% Y/Y (up 1.2% last month). 

Key factors that could affect supply or price:

  • Domestic demand and exports are very strong. Resin producers were able to get increases to hold in both June and July, and have announced another one for August. Even with pipe/conduit producers running their plants 24/7, inventories are not as robust as they were, resulting in across-the-board decreased service levels and increased lead times, which on certain sizes (plumbing 2") have become critical.  Trucking issues are also starting to creep back into the equation, but it is not the problem that it was two years ago. Pipe producers expect strong activity to continue into early fall.