One of our welded pipe suppliers announced an increase in their raw material surcharge yesterday to $150 a ton. That’s on top of a base price of $690 a ton, for a total of $840 a ton. Consider that the price a year ago was around $540 a ton.
V & M Tubes, one of our primary seamless pipe suppliers, has suspended quoting new orders for at least the next two weeks. As of today, then, our three main suppliers of seamless pipe are not accepting inquiries for new orders.
Economics 101: How do you think this will affect the cost of new construction projects involving steel pipe? Since the supply of steel pipe is being affected by the availability of steel billet and sheet, what do you think is happening to the cost of anything that is made with steel?
When is this going to start hitting consumers in the wallet?