Current situation:

  • Producer prices for HDPE pipe were up 3.5% M/M (up 3.3% last month) and were up 13.5% Y/Y (up 9.2% Y/Y last month).  Plastic pipe fittings and unions were up 2.6% M/M (up 0.6% last month) and were up 4.8% Y/Y (up 2.1% last month). 


Key factors that could affect supply or price:

  • Overall: Availability should continue to gradually improve as demand winds down (at least in the northern part of the country). The resin market remains tight with three producers just announcing an immediate $.03/lb increase, whether it will fully seat itself into market pricing is up in the air. Westlake and Formosa are still in force majeure. Plumbing pipe pricing seems to be fairly stable, the announced price increases may be an attempt to keep prices from dropping in December.

    Fittings: Same as October report - Inventories and service levels are starting to return to normal, but there is still some work to do.  Again, with the winter months just around the corner, demand will come down and help producers catch up.