PVF Market Information
September 12th, 2012
The following information is an accumulation of “facts” that effect the market prices and deliveries of speciality Pipe Valves & Fittings. Some are positive and some are negative depending on your position in the supply chain, sometimes it is difficult to determine which outweighs the other.
PRICING: Prices are moving up in spite of current low demand. Commodity prices such as scrap, iron ore, ferro-moly and nickel have had dramatic increases since January 2010. At this moment prices for Specialty Pipe & Fittings are the lowest since 2002. We feel that the mills will be forced to increase prices in 2010 due to increased raw material costs. The effect of a recent 90% price increase in iron ore will have a confirmed immediate price impact of + 10% on alloy materials (P91, P92, P22, P23, P11, P5 & P9) out of the mills within the next couple of days. (Click Here to read more from BusinessWeek)
DEMAND: Demand is also the lowest since 2002. There are several factors that could reverse this trend as follows: an $80 billion USD backlog of projects currently held by Korean EPC’s for the Middle East, a continual increase in power needs by developing countries and strong markets in flat rolled and OCTG products.
A factor that could extend the low demand cycle is China becoming self sufficient. This will create additional capacity at manufacturers that have been heavily involved in the supply of specialty pipe & fitting products into China. Once China and India become self sufficient, they will become net exporters. When this does eventually occur, the manufacturers in the rest of the world will be in serious trouble.
DELIVERIES: Deliveries are the shortest in eight years. Purchasing activity in some cases are being delayed due to shorter deliveries. There also seems to be a wait and see attitude in anticipation of the "bottom out" of prices. In our opinion the bottom in both price and delivery was reached at the beginning of 2010. Prices will rise and deliveries will likely extend since many manufacturers have reduced capacity thru raw material inventory and personnel reductions.
The above are U. S. Metals observations. They can be good or bad depending on your individual situation. Please give me a call or send us an e-mail ( firstname.lastname@example.org ) if you have any questions or if you require additional information. We will be pleased to discuss with you further, the above observations.
We would also appreciate an opportunity to assist you on your Specialty Alloy (P91, P92, P22, P23, P11, P5 & P9) Pipe, Valve & Fitting requirements.
Trade Name1 1/4 Chrome2 1/4 Chrome5 Chrome9 Chrome9192 Chrome Alloy Seamless PipeA335A335A335A335A335A335 GradeP11P22P5P9P91P92 UNS #K11597K21590K41545S50400K91560K92460 Chrome Alloy Welded PipeA691A691A691A691A691---- Grade1 1/4CR2 1/4CR5CR9CR91---- Chrome Alloy Heater TubesA213A213A213A213A213A213 GradeT11T22T5T9T91T92 UNS #K11597K21590K41545K90941K90901K92460 Chrome Alloy Buttweld FittingsA234A234A234A234A234---- GradeWP11 / WP11WWP22 / WP22WWP5 / WP5WWP9 / WP9WWP91 / WP91W---- Chrome Alloy FlangesA182A182A182A182A182A182 GradeF11F22F5F9F91F92 Class 1 / UNS #K11597K21590K41545K90941K90901K92460 Class 2 / UNS #K11572-------------------- Class 3 / UNS #K11572K21590---------------- Chrome Alloy Forged FittingsA182A182A182A182A182A182 Ident SymbolF11F22F5F9F91F92 Class 1 / UNS #K11597K21590K41545K90941K90901K92460 Class 2 / UNS #K11572-------------------- Class 3 / UNS #K11572K21590---------------- Alloy Forged ValvesA182A182A182A182A182A182 Ident SymbolF11F22F5F9F91F92 Class 1 / UNS #K11597K21590K41545K90941K90901K92460 Class 2 / UNS #K11572-------------------- Class 3 / UNS #K11572K21590---------------- Cast Alloy Steel ValvesA217A217A217A217A217---- GradeWC6WC9C5C12C12A---- UNS #J12072J21890J42045J82090J84090---- Chrome Alloy PlateA387A387A387A387A387A387 Grade11225991---- Class 1 / UNS #K11789K21590S50200K90941-------- Class 2 / UNS #K11789K21590S50200K90941K90901---- Chrome Alloy BarA182A182A182A182A182A182 GradeF11F22F5F9F91---- UNS #------------------------
Refer to ASME B & PV Section II for non-identical A/SA requirements