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PVF e-news, October 4, 2007

Brought to you by Supply House Times

Editor Jim Olsztynski

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PVF Insights

Is China’s PVF Quality Up To Snuff?china-flag

Tainted pet food, lead-laden toys and various other quality problems associated with Chinese-made goods lead us to wonder about the reliability of industrial pipe, valves and fittings from China, which get used in so many critical applications. I discussed this issue recently several master distributors and distributors. Here are some of their most pertinent comments.

Distributor 1: "We have been marketing China products at various levels for over 10 years. Our quality process system has been successful in weeding out the suspect manufacturers thus far. However, we have been reluctant to offer Chinese pipe and fittings to major U.S. oil company accounts due largely to the fact that the Chinese manufacturers are not on our oil approved manufacturer list (AML). While we have the infrastructure to pursue the addition of all PVF manufacturers, we have intentionally held off the AML addition process because of the recent 'China alerts' sent out by many of the U.S. major oil companies. Bad news travels very fast and the quality departments of the major oil companies have advised of several quality violations of Chinese bulks, from falsification of lesser material grades on alloy pipe to certification of welded fittings as seamless.

Distributor 2: "In most cases I feel that the steel pipe produced by Chinese mills is of inconsistent quality, although this is not to say the pipe does not meet spec. We have rejected more pipe from China in the last couple of years than in my entire career buying from many other countries. Material that comes in top condition from a mill one time comes in the next time with quality issues ranging from rust to incomplete or incorrect markings. I have tried to stay with the same mills and brokers to assure that our issues are minimal. Domestically produced steel is not without issues as well, but they are of minor concern."

Distributor 3: "It depends on the factory in question. Most Chinese PVF factories are not yet regarded as export quality – particularly those that are state run. However, several Taiwanese-owned and operated facilities are certainly capable of producing good quality PVF. This position is further supported by the growing number of U.S. manufacturers who are outsourcing semi-finished or finished PVF products to Chinese factories."

Distributor 4: "The problem is that manufacturers have turned into master distributors. I don’t want to buy junk, and it shouldn’t fall on a distributor’s shoulders to assure quality. Are we going to do additional testing? If I were to look at a piece of pipe, could I tell if it went through an annealing process? A lot of brokers can’t tell either. We still buy a lot of domestic product, not only for quality reasons, but because when importing finished products we have to guess at where the fill rates are going. We have to have enough to satisfy demand, and if we don’t we’ll have to wait several months to get more."

Breaking News

Ferguson Acquires Davidson Pipe
Ferguson Enterprises has purchased PVF wholesaler Davidson Pipe of Brooklyn, NY, in a stock transaction completed Aug. 27. The acquisition includes eight service centers that operate as The Davidson Group , including Gilmour Supply Co., T&A Valve, Monotube Pile Co., Specialty Pipe & Tube and Davidson Pipe Supply. Davidson reported revenues of more than $125 million at the end of its last fiscal year. Current President Peter Davidson will continue to lead the group as general manager, reporting to Robert Braig, vice president of the Industrial and Specialty Business Group for Wolseley's North American division. 

bill_&_joel_(3)Two Employees Buy
Stritt & Priebe
Stritt & Priebe, Inc.,
an industrial valve supply, repair and service business in Buffalo, NY, has been purchased by Bill Victor (left) and Joel Scott, salesmen for the company, from former owner and president Edgar Priebe when he decided to retire after 20+ years. Victor and Scott have worked at Stritt & Priebe for a combined total of 33 years.   Stritt & Priebe claims to be the only National Board certified facility in New York State for the recertification and repair of safety/relief valves. They perform on-site or in-shop repair, and even fabricate obsolete parts when necessary. The company was started in 1922 by John Priebe and Harry Stritt as a PVF supply house.

Outokumpu Pumps $715 Million Into Stainless Expansion
Finland's Outokumpu, although making production cuts, has announced a $715 million expansion program that will increase finished product capacity at its Avesta works in Sweden  from 250,000 tons per annum (TPA) to 650,000 TPA, mainly in duplex grades, through 2010. Outokumpu’s Lean Duplex (LDX 2101) grade contains 1.5% nickel, and its corrosion resistance is similar to standard austenic 304 grade but with twice the strength. Demand for duplex grades of stainless is growing faster than that of the standard grades, and annual growth is estimated at 20%. Duplex grade is characterized by good corrosion resistance and high strength plus low nickel content.

Warren Alloy Opens In Cincy
Warren Alloy announced the opening of its newest branch in Cincinnati. The 35,000 sq.-ft. facility offers pipe, tubing, weld fittings, pressure fittings, flanges and nipples, along with Warren and Neway valves. The company also has branches in Houston, Charlotte and Salt Lake City. Warren Alloy is committed to being a master distributor that sells only to distributors.

Collins Opens Two NY Locations
Collins Pipe & Supply (East Windsor, CT) has opened a full-service distribution center and sales office in Syracuse, NY and its newest instruments and controls sales office in Buffalo, NY.

White Paper To Deal With Piping & Process Safety
Engineered Software, Inc. , a provider of software used to design and simulate the operation of fluid piping systems, has been granted a speaking spot at the 2007 Chem Show Educational Conference. Taking place at the Jacob K. Javits Convention Center in New York City, Engineered Software’s Chief Engineer, Ray Hardee P.E., will present the abstract “Using a Piping System Model for Process Safety Management,” on Thursday, November 1 at 2:00 p.m. in the Javits Center.

 

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10 Ways To Deal With Rising Prices
Here's an assessment of procurement trends and tips for industrial buyers that offers some food for thought when it comes to restraining costs in the face of rising commodity and oil prices.

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PVF Data

Stainless Prices Seen Going Up
Prices peaked in June and have since retrenched in the 3rd quarter and heading into the 4th. But conditions seem ripe for a turnaround. Read about it here.

Industrial Valve Imports Up 10.7%
Industrial valve imports have risen to a customs value of $3.52 billion through the second quarter of 2007, compared with $3.18 billion in the same period of 2006, according to tariff and trade data compiled by the U.S. Department of Commerce and U.S. International Trade Commission. Pipe and fittings imports in the same period rose 4.4%, from $16.34 billion in value last year to $17.06 billion in 2007.

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Upcoming Events

NASPD Fall Conference, Oct. 11-13, Cancun, Mexico

 

Facility Management Association World Workplace 2007, Oct. 24-26, New Orleans

 

ASA Network ’07, Oct. 24-27, Anaheim

 

Chemical Process Industries Expo, Oct. 30-Nov. 1, New York City

 

Greenbuild International Conference and Expo, Nov. 7-9, Chicago

 

Power Gen International, Dec. 11-13, New Orleans

AHR Expo 2008, Jan. 22-24, 2008, New York City 

MCAA Convention, March 2-8, 2008, Palm Desert, CA,

NFPA World Safety Conference & Expo, June 2-4, 2008, Las Vegas,

ISH North America, Oct. 2-4, 2008, Atlanta

 

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New PVF Products

Matco-Norca Adds Steel Pipe Nipples
steelnipple_smMatco-Norca has recently expanded its steel pipe nipple product line to include new extra heavy black seamless nipples ranging in diameter from 1/8" to 4" and up to 12" long close lengths. These products are used in a variety of industrial high pressure applications.

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