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SUPPLY CHAIN IMPACTS

04.27.22

Supply chains already impacted by the COVID-19 pandemic are experiencing further impacts from the ongoing war in Ukraine and Russia. We were recently informed by suppliers that this situation would impact ductile iron product pricing and availability. One way this is particularly affecting the construction industry is through the availability and pricing of ductile iron products. Pig iron from Ukraine and Russia is unavailable, and as a result scrap metal is growing scarcer and more expensive. Fuel prices and employee shortages are also affecting the market.

Due to these challenges, ductile iron pipe manufacturers have implemented various price changes. This includes a scrap surcharge that is starting at $150/ton to all shipments until scrap prices return to February 2022 levels from McWane Ductile and price changes from 4% to 17% (depending on the product) from Tyler Union. It has yet to be determined how this instability in material prices and availability will impact infrastructure projects that are moving forward with the recent influx of funds from ARPA and IIJA.

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