PVC/ABS Market Impacts from Resin Shortage

To our valued customers,

PVC/ABS resin companies continue to recover from the extensive damage inflicted upon the Gulf Coast last month by Winter Storm Uri. Freezing temperatures and extended power outages damaged various industrial facilities, causing numerous manufacturing delays. This damage has exacerbated issues that resin manufacturers were still experiencing from 2 hurricanes that passed through the region in 2020.  The combined impact of these natural events extends a period of reduced production capacity well into the summer.

PVC/ABS resin availability has become extremely limited due to reduced production capacities. Current market demand for pipe and fitting resin continues to exceed the production capabilities of the resin manufacturers. Due to these conditions, manufacturers are allocating resin to their customer base at approximately 60% of the normal volumes.

As a result of these resin allocations, pipe and fitting producers have begun to allocate PVC/ABS pipe and fittings to their wholesale and retail customer base. These announced allocations have led to an industry wide spike in buying activity that has further stressed available inventories in all markets across the U.S.

Actions taken by Ferguson

To ensure consistent supply of PVC/ABS pipe and fitting products, Ferguson will continue to closely monitor the PVC/ABS market and work proactively with our vendor partners to minimize any negative impacts resulting from these allocations, including mitigating extended lead times for all Ferguson customers. We will continue to take steps to ensure we secure all available inventory of PVC/ABS fittings within the U.S. markets and maximize product availability for our customers.

Please reach out to your local Ferguson sales professional with additional questions or any other supply needs you may have.