Several members of the PVF vertical inside IMARK met for breakfast at the IMARK Annual Meeting in Scottsdale. Following the meal, members engaged in spirited conversation regarding the economy, the need for an expanded offering of industrial PVF product suppliers, expanded domestic sources and the desire to continue to meet and share best practices and possible group bulk buys. As a result, we are forming a PVF Advisory Council to address these topics and others that not only the PVF members, but all members are facing today.
Evidence of Price Increases and Manufacturer Statements
Recent reports and announcements from various industrial suppliers and manufacturers strongly suggest that price increases on steel fittings, including forged high-pressure varieties in both carbon and stainless steel, are indeed occurring.
Many industrial distributors have compiled lists of the 2025 price increases from numerous manufacturers. While not all IMARK suppliers currently, several of these increases are explicitly stated as “tariff related.” For example:
- Crane announced a 10% tariff-related increase on specific valve types made of cast steel, bronze and iron.
- Merit Brass implemented a 10% tariff-related increase on 150# stainless steel fittings and a 9% increase on stainless steel nipples, with even larger increases on other product categories.
- Apollo cited tariff-related increases ranging from 6% to 12% on various valve and fitting products, including cast iron and bronze valves and certain brass ball valve families.
- Matco-Norca announced a 10% tariff-related increase on all water service valves and other products.
- Anvil increased prices by 4% on domestic forged steel fittings and unions, explicitly mentioning them as tariff related.
- ASC Engineered Solutions also lists price increase announcements for their high-pressure product lines, including forged steel fittings and unions, with the most recent increases effective in March and April 2025. While not all explicitly state “tariff related,” the timing aligns with the implementation of the tariffs.
- Quality Pipe Products has a history of price increase announcements, with some of the more recent ones in 2025 potentially reflecting the impact of the tariffs on raw material costs.
The Impact of the 25% Steel and Aluminum Tariffs
The claim directly links these price increases to the 25% tariffs on imported steel and aluminum. Here’s how these tariffs contribute to higher costs for U.S. manufacturers of forged steel fittings:
- Increased Raw Material Costs: The most direct impact of the tariffs is the higher cost of the primary raw materials: steel (both carbon and stainless, which contains nickel and chromium in addition to steel) and aluminum. Even if manufacturers source domestically, the tariffs can reduce the supply of imported steel and aluminum, allowing domestic producers to raise their prices due to less competition.
- Impact on Stainless Steel: Stainless steel production relies on nickel and chromium. While the direct tariff is on steel, tariffs on steel imports can still influence the overall steel market, potentially affecting the price of stainless steel base materials. Additionally, global supply chain disruptions and the price volatility of nickel and chromium independently contribute to stainless steel price fluctuations.
- Reduced Competition: Tariffs aim to protect domestic industries by making imported goods more expensive. While this can benefit U.S. steel and aluminum producers, it reduces the competitive pressure on them, potentially leading to higher prices for domestic buyers, including manufacturers of steel fittings.
- Supply Chain Effects: Tariffs can disrupt established global supply chains. Manufacturers who previously relied on more affordable imported steel or aluminum may need to switch to domestic sources or pay the higher tariff, both of which can increase their input costs.
- Potential for Retaliatory Tariffs: As seen historically, the imposition of tariffs by the United States can lead to retaliatory tariffs from other countries on U.S. exports. While this doesn’t directly increase the cost of raw materials for U.S. fitting manufacturers, it can harm their ability to sell finished products internationally, potentially impacting their overall financial health and indirectly influencing pricing strategies.
Other Contributing Factors
While the tariffs are a significant factor, it’s important to acknowledge that other elements can also contribute to price increases:
- General Inflation: The broader economic environment, including general inflation, can push up manufacturing costs (labor, energy, transportation).
- Supply and Demand Dynamics: Increased demand for steel fittings in certain sectors (e.g., infrastructure projects, energy) can lead to higher prices. Conversely, decreased demand can sometimes moderate price increases.
- Energy Costs: Fluctuations in energy prices, a significant input in steel and aluminum production and manufacturing processes, can affect the final cost of fittings.
- Geopolitical Instability: Global events and trade tensions (beyond the specific U.S. tariffs) can influence raw material prices and supply chains.
Conclusion
The claim that multiple U.S. manufacturers have announced price increases on high-pressure forged steel fittings (both carbon and stainless) is supported by recent announcements from master distributors, suppliers and manufacturers. The 25% steel and aluminum tariffs enacted previously by the U.S. administration are a significant contributing factor to these increases by directly raising the cost of raw materials, reducing import competition and potentially disrupting supply chains. While other economic factors also play a role, the tariffs have undoubtedly added upward pressure on the prices of steel and, consequently, steel-based products like high-pressure forged fittings.