Because Texas' state mask mandate has ended and all businesses have reopened at 100-percent capacity, the PVF Roundtable has returned to in-person networking events at The Bell Tower on 34th in Houston.
"This announcement ensures Texans can tap into their own self-reliance to seize the opportunities our state has to offer," said Texas Gov. Greg Abbott.
While masks will remain a hot topic for some time, most of us are more eager to discuss the rollercoaster ride that is currently happening with the pipe, valve and fitting (PVF) market. With steel plate and pipe prices continuously struggling to meet current demand, it will be interesting to speak face-to-face with suppliers, manufacturers, distributors and end users about material availability and soaring prices.
PVF Roundtable member companies are pleased to provide an industry outlook on the PVF industry with an in-depth view of what's going on in today's precarious market state.
"Steel plate pricing increased by almost 40 percent in just 30 days, increasing prices drastically on our quoted projects from December," said Gabe Hatfield, president of OK Pipe & Fittings Inc. "Tubing and piling have increased, yet again, with coil and plate to follow their pace."
Raw materials are becoming increasingly difficult to find, with lead times averaging 12-15 weeks before delivery. The steel industry continues to try to catch up from the complete shutdowns at the onset of the pandemic.
Valve sales are up as manufacturers shift their focus to depleting current inventory levels.
"Newmans Valve, as a master distributor, sells valves to the downstream segment through distribution. In 2021, we've seen an uptick in same-day, off-the-shelf sales and weekend call outs," said Sara Alford, president of PVF Roundtable and general manager of Newmans Valve. "Shutdowns that were scheduled for fall 2019 were previously pushed to 2020, but when COVID-19 hit our industry, very few shutdowns actually happened. It is too early to tell if we will be in full shutdown mode yet, but we are expecting full shutdowns to happen in fall 2021. We are hopeful that this is the start of good things to come for our industry."
Frac and drilling products are starting to restock after low inventory levels in the fourth quarter of 2020, but they have a long road ahead to regain last year's numbers. Joe Pro, president of Pennsylvania Machine Works and current PVF Roundtable board member, reported that even though quoting activity has increased, forged-steel pipe fittings sales are down.
"Distributors are optimistic because end users are reporting previously quoted projects that are expected to begin in the second or third quarter," Pro said.
Flanges make up another huge sector of the PVF market, and flange sales are looking up.
"Like most people in the PVF industry, Federal Flange struggled through a difficult 2020," said Shanna McKelvain of Federal Flange. "We saw a significant reduction in demand for our products, coupled with downward pricing pressure in the domestic flange market, but we've seen a slight rebound in business over the past few months. We are optimistic this upward trend will continue."
Though the PVF industry is sporadic across the board, there is one sentiment that PVF Roundtable members share: We're all in this together. That's the beautiful thing about a networking organization such as this. We all call, email or chat via video, and we'll meet again in person to discuss projects, bids, trends and industry needs. We invite you to join us.
The PVF Roundtable Don Caffee Memorial Golf Tournament will be held Monday, June 7 at The Clubs of Kingwood, followed by a quarterly networking meeting at The Bell Tower on 34th on Tuesday, June 8. Then, our annual TroutBlast fishing tournament will take place October 7-8 in Matagorda, Texas, followed by PVF Roundtable's Annual Clay Shoot in November.
For more information, visit www.pvf.org or call (281) 590-0190.
