HARDI Wholesalers Report Good Demand

On Wednesday, Steel Market Update (SMU) participated in a monthly steel conference call hosted by the Heating, Air-conditioning , Refrigeration Distributors International (HARDI). HARDI wholesalers supply galvanized sheet and coils to the mechanical contractors involved in residential, multi-family and commercial construction segments of the construction industry.

Consolidation was the first topic of discussion with AK Steel and Steel Dynamics’ recent absorption of the former Severstal North America facilities. One of the service centers involved with the group pointed out that a number of the low priced domestic options have been removed over the past two years. RG Steel was dissolved through bankruptcy and the plants no longer exist, ThyssenKrupp Steel in Calvert, Alabama was purchased by ArcelorMittal and Nippon Sumitomo (AM/NS Calvert) which has resulted in a more structured sales process. Also, Nucor is in the process of purchasing Gallatin which the service center described as, “elimination of the lowest common denominator.” In other words, one of the lower priced domestic mills is being bought by a mill which will probably monitor prices better than what is happening at the mill currently.