MECHANICAL CONTRACTING | PVF MARKET REPORT |
increase in the pvf market. The inability to pass along raw material increases to the industry continues to put great margin pressure on manufacturers. The energy business segment,
particularly the upstream side remains brisk. The advent of numerous shale natural-gas finds and the industry’s ability to extract oil from these shale formations has increased production. The continued increased rig count and corresponding $90/barrel oil has added increased up stream activity. The energy business segment is expected to continue at this pace through the first half of 2011. With a slight GDP increase forecast, the industrial business segment may show positive signs during the second quarter of 2011. A manufacturer comments that the shift in power to a more conservative House of Representatives will aid business in general. The business sector is especially concerned with new power to regulate emissions possessed by the EPA. The hope is the 112 Congress will curtail the EPA’s perceived desire to regulate emissions and essentially enact a form of “cap and trade” as reported by a manufacturer.
Stainless Steel Gate, Globe, and Check Valves
Pricing:→Stainless valve
manufacturers forecast no change in pricing for gate, globe and check valves thru the first quarter. Lead Times: Fill rates for
commodity valves are 75% - 85%. Lead times for commodity valves not in stock are forecast for 8 - 10 weeks. Non-stock specials are running 16 - 20 week lead times. Comments: Raw material
costs have increased and manufacturers expect price increases in the 2nd or 3rd quarter of 2011.
Bronze and Iron Gate, Globe, and Check Valves
Pricing: ↑ Bronze and iron
valves are forecasting increases of 5% - 7% during this first quarter 2011 due to raw material costs. Lead Times: Fill rates for
Bronze and Iron valves remains at 70% - 80%. Lead times for Bronze and Iron valves are forecast for 4 - 8 weeks. Comments: Overall demand
for bronze and iron is relatively flat. Raw material costs continue to increase - the
e Circle 24 on reader reply card
bronze ingot has increased greatly and expected to continue.
Cast Steel Gate, Globe, and Check Valves Pricing:→Manufacturers forecast
no price change thru the 1st quarter 2011. Lead Times: Fill rates remain at
70% - 80% with forecast delivery in 4 - 8 weeks. Non-commodity valves are shipping in 16 - 20 weeks. Comments: Raw material costs are
increasing and price increases are expected during the 2nd or 3rd quarter 2011.
Forged Steel Gate, Globe, and Check Valves
Pricing:→Manufacturers indicate
stable pricing thru the 1st quarter of this year. Lead Times: Lead times are
running 6 -8 weeks for forged steel valves with fill rates of 60% - 70% for commodity valves. Specials are running 14 - 20 weeks. Comments: Raw material costs are increasingly putting more
pressure on manufacturers.
Quarter Turn Valves — Ball and Wafer Pricing: ↑ Quarter turn
manufacturers are forecasting a possible increase of 3% - 5%. Sourcing from key suppliers presents a problem for critical components because of increased demand. Lead Times: Fill rates for quarter
turn valves are running 65% - 75% with lead times forecast for 6 - 8 weeks. Non-commodity specials are running 12 - 16 weeks. Comments: Key supplier backlogs
are high. Increases are expected across the board of not this quarter the next. Customers have had more fast track projects. Competition is high for commodity ball and butterfly valves from India, Korea and China. Supply chain management and inventory control are key issues in the PVF market. One manufacturer notes that end users continue to migrate to single source supply contracts for PVF. Large multi-national integrators are gaining market share.;
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phc march 2011
www.phcnews.com
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