Current situation:
- Producer prices for HDPE pipe were down 0.3% M/M (down 0.9% last month) and were again down 3.8% Y/Y (also down 3.8% Y/Y last month). Plastic pipe fittings and unions were down 0.4% M/M (up 0.3% last month) and were up 2.7% Y/Y (up 3.6% last month).
Key factors that could affect supply or price:
- Prices appear to be firming up. Resin producers have been pushing increases in both January and February, there is a good chance that an additional $.03lb will go into effect by month’s end. Export pricing has been rising, although there is concern about the coronavirus and the resulting Chinese economic slowdown. How fast China gets back to work remains to be seen. Expect prices to continue to move up in March and to continue into April as business is strong — as long as the weather cooperates.
