MRC Global InSight

Subtle Growth in the Midst of
Economic Uncertainty

MRC Global is pleased to welcome you to our April 2019 edition of InSight. Since our last publication, we have seen some uncertainty of what the price of oil will be throughout 2019. Analysts are divided in opinion, and end users are cautious with capital expenditure budgets.

In the U.S., pricing has stabilized after the inflationary impact of tariffs and quotas experienced in 2018. The market has settled into a new normal since our last edition regarding Section 232, Section 301 tariffs and Anti-Dumping and Countervailing Duties. President Trump has extended the deadline for an additional increase in tariffs against China through Section 301 by three months to June. At that point, an additional 15% could be added to the existing 10% tariff on all Chinese products, which would further impact the PVF supply chain. There is also general inflation on products manufactured in China due to environmental improvements enforced by the government that have driven increased capital expense for manufacturers.

Activity outside of North America is encouraging. Predictions of 8% growth overall, active downstream turnaround plans and renewed investments in the offshore upstream sectors are the lead indicators. Pricing and supply are currently stable, but that could change as the activity picks up throughout the year.

One notable trend we have seen from our large, global customers is a movement to implement ‘smart plant’ and IOT (Internet of Things) processes and/or technologies into operations in all three streams. Consultants have advised technical advancements are necessary, and CEOs have challenged their organizations to become more efficient by leveraging technology and real-time data in their operations. This has invigorated interest in technologies that will improve efficiency and safety, like valve monitoring systems that greatly reduces the possibility of failure of critical valves.

MRC Global is committed to supporting our customers’ IOT goals through innovative products and services like ValidTorque certification and ValveWatch®.

InSight Magazine

InSight Magazine: October 2015

Robert Stein

Senior Vice President
Business Development
InSight Magazine: October 2015

John Bowhay

Senior Vice President
Supply Chain Management,
Valve & Technical Product Sales