Pipes, Fittings & Flanges - Market Update
- 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:
- Margins to stay under significant pressure
- Exotic materials may see a price increase due to the increase in Nickel prices (c. 30%)
- Carbon steel materials are expected to stay flat, as the increase in iron ore cost is balanced by the reduction in coal/energy costs.