American Piping Products Chairman Al Rheinnecker was quoted in a Wall Street Journal article exploring recent drastic increases in steel and aluminum prices that have manufacturers scrambling to source material as mills and distributors clamber to increase supply.
A steel index calculated by Midwestern business intelligence company CRU Group “estimated prices at $1,940 a ton at the start of September, up from around $560 in September for both 2019 and 2020.”
Rheinnecker noted buyers are better off when they work with distributors who carry larger inventories for immediate delivery.
“Having a large inventory of pipe, from less than an inch in diameter to five feet, has made it easier to supply customers,” he said. “Many are willing to pay higher prices to get the specific sizes of metal pipe they want…and some are having to accept what is available.”
While American Piping Products has not been immune to high prices and price volatility, our extensive inventory and suite of value-add services help customers finish their projects faster, blunting the impact of higher raw material cost.