What’s happening:
- All three major pipe products categories all volatile to start 2021.
- PVC, copper and steel pipe have seen increases.
- This is due to increasing costs in raw materials and freight.
The global market for raw materials including steel, PVC resin and copper has been more volatile than every before all at once. We closed 2020 expecting to see price increases in Q1, and already have seen new list price sheets for domestic welded steel pipe, strut and threaded rod. A new list price sheet for globally sourced welded steel pipe is set to be released, with a PVC plumbing increase expected sometime in Q1 and a copper increase always possible as it reaches record highs on an almost weekly basis.
Please see below for information on each of these product categories.
How we can help:
As you read more about the ongoing challenges we face in a volatile commodities market, remember that Merfish United’s business model is designed for low and unpredictable volume scenarios, exactly like the one we are in right now. With us, wholesalers can buy a broad array of pipe products from one supplier, at low minimums for FFA.
Globally Sourced Steel Pipe:
See the new list price sheet by clicking here.
The global steel pipe market continues to undergo dynamic changes due to a confluence of factors related to the unique challenge of the complicated supply chain involved in importing steel pipe. These challenges include rising costs at both the shipping and receiving ports, a global container shortage, increasing domestic trucking freight costs, and corresponding shipping and devanning increases. Infact, Maersk just increased general rates and high volume surcharges on 1/12. Global demand for steel products remains high and the cost of raw materials (Hot Roll Coil) continues to rise. We previously communicated our expectation of these price increases, and we believe this market volatility will continue through the first half of 2021 at a minimum.
As a result, Merfish United will be implementing a price increase of 10% on globally sourced steel pipe products effective Monday, 1/18, when a new list price sheet will be available on our website. Please call your representative to place orders at current price levels through Friday 1/15 5:00pm local time. You can download our current list price sheets on our website, where you can enter your multiplier in the Excel sheet.
Domestic Steel Pipe:
Update 1/19/21: An increase and new list price sheet have been announced.
As previously communicated, domestic steel pipe mills announced a 12% increase on welded pipe products. A new list price sheet is available now, dated 1/11. Enter your multiplier on the Excel sheet to see your pricing.
Strut:
See the new list price sheet by clicking here.
Strut manufacturers have announced another round of increases following their first increases since 2018 back in December. Hot-Rolled Coil Steel (CRU) is the material needed for strut production, and the cost of CRU has risen over 90% since its lowest point in July. This has resulted in steel mills that produce CRU to announced increases which impacts domestic and import steel pricing, lead times and overall availability on all incoming raw material.
Because of this, strut manufacturers have implemented an 8-10% increase. We will be holding current price levels through close-of-business Friday, 1/15 and moving to a new sheet the following Monday, dated 1/18. Please call your Merfish United representative to place orders before the increase, or get your multiplier which you can enter into the current list price sheet.
Rod:
See the new list price sheet by clicking here.
Like strut, threaded rod manufacturers have announced an increase of 8-10% due to rising input costs like scrap on the world market, the base cost of steel from domestic mills, and freight.
We will be holding current price levels through close-of-business Friday, 1/15 and moving to a new sheet the following Monday, dated 1/18. Please call us to place orders before the increase or get your multiplier which you can enter into the Excel list price sheet.
Copper Tube:
Copper closed at 3.70/lb last Thursday, a X-year high. It then fell $.14 before closing at $3.61 yesterday. See the chart below for copper performance over the past 30 days, noting the past week.
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/charts/metals/base/spot-copper-30d.gif) |
PVC Resin:
Update 1/19/21: An increase and new list price sheet have been announced.
Market indicators for PVC resin show an increase likely taking effect in January/February, which will result in a PVC Pipe price increase. PVC resin, the raw material needed for PVC pipe production, has reached all-time highs due to a tight supply and high demand. Coronavirus, hurricane, and maintenance-related slowdowns all contributed to a tight supply during the beginning of the Covid-19 pandemic. The start of the recovery and demand for new construction, especially in the residential sector, lead to continued demand even in the winter months where PVC typically sees a slowdown.
Please call your sales rep for more info and to place orders before any increases go into effect.
We’re ready to help you now:
More than ever before, use us in 2021 as your go-to pipe source. With us, buy only what you need, when you need it. Mix-and-match Copper Tube with Steel Pipe, PVC Pipe, Conduit, Strut & Rod to make our low weight minimums on your next weekly order.