MRC Global InSight

Oilfield Products

Shale play activity is driving increased demand and inflation in the U.S., and demand continues to be strong for oilfield products and mill supplies. Price increases for closures, mill supplies, tools and safety equipment are ranging from 5% to 15%. With the anticipated continuation of growth, lead times will follow the demand and slightly extend through the balance of 2018.

The HDPE market is very active in North America, driven by strong demand in the upstream, on-land sector. Current lead times for small diameter HDPE pipe (2” to 8”) are 4 to 10 weeks. Lead times for larger sizes are running between 12 to 16 weeks. We do not expect a slow down during the balance of 2018 or into 2019, but supply is improving as some large projects are completed and more capacity comes on-line.

HDPE fittings (molded and fabricated) are carrying lead times between four to eight weeks depending on the size, type and manufacturer. Pricing has remained stable for three to four months, which is a sign of supply/demand balance. Demand for fiberglass products has been strong, driven by the onshore upstream market. Current lead times for fiberglass PFF are ranging between 12 to 24 weeks, depending on the size, type of product and plant. We expect demand will remain strong through 2018 and into 2019. Lead times on some products, such as aliphatic, are carrying lead times into January 2019. Pricing has been flat since May 2018 and there are no expected price increases in the near future.