MRC Global InSight

Oilfield Products

Prices for the oilfield HDPE and fiberglass products have softened. In early 2019, activity has declined slightly compared to 2018. Speculation over the price of oil for the remainder of this year has forced some companies to take a more conservative approach in 2019.

This segment has been traditionally soft in Q1 and typically picks up in the second and third quarters. Current lead times for small diameter oilfield pipe (2” to 8”) are stock to 2 weeks. Lead times for larger sizes are running between 2 to 4 weeks. We anticipate lead times will begin to increase in the second quarter.

Oilfield HDPE fittings (molded and fabricated) have lead times between 1 to 3 weeks depending on the size, type and manufacturer. Even though demand is down versus 2018, pricing has remained stable.

Quotation activity late in the first quarter indicates that we will experience the anticipated increase in demand in second and third quarters. Lead times will increase and prices may also increase.

Lead times on other oilfield products, such as domestic hammer unions, are improving to 2 to 4 weeks. While, commodities like liquid level controllers, pressure regulators and high-pressure motor valves remain at 4 to 6 weeks. Price increases for those items ranging from 10% to 25% in Q1 2019, went into effect as a result of the Section 301 tariffs as described in other sections of InSight.