Current situation:
- Producer prices for HDPE pipe were up 1.1% M/M (up 0.2% last month), and were up 15.7% Y/Y (up 14% Y/Y last month). Plastic pipe fittings and unions were up 0.5% M/M (up 1.4% last month) and were up 6.6% Y/Y (up 6.2% last month).
Key factors that could affect supply or price:
Overall: The December resin price increase did not take place — now the plan is for $.04 lb. increase in January and another $.03 lb. in February. This may be an effort by the resin companies to keep the current levels fairly firm vs. trying to get any kind of real increase. The resin market remains tight with export pricing being sky-high, expectations are that it stays that way for the foreseeable future.
- Most, if not all, pipe producers have announced an increase for January 22.
- Fittings - Same as last report - inventories and service levels are starting to return to normal, but there is still some work to do. Again, with the winter months, demand will come down and help producers catch up.
