Pipes, Fittings & Flanges - Market Update

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SCM Daleel - Admin

Image 06.09.2020
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Market Summary

  • The market is depressed but started to get busier
  • Due to postponed activities over the last 6 months, everything is urgent now
  • Prices are stable, although exotic products expected to go up, due to escalation of Nickel prices
  • Activities in this segment are expected to increase
  • Some lead times improvements, but this may be temporary
  • Ample supply, capacity underutilized worldwide
  • It is expected Q3 and Q4 2020 to be busy.

 

Price & Cost Analysis

Increased costs due to COVID pandemic, was balanced by lower raw materials and potentially, mills’ willingness to reduce selling prices. For the next 3-6 months, it is expected that:

  1. Margins to stay under significant pressure
  2. Exotic materials may see a price increase due to the increase in Nickel prices (c. 30%)
  3. Carbon steel materials are expected to stay flat, as the increase in iron ore cost is balanced by the reduction in coal/energy costs.

 

 

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