HARDI Wholesalers Say Discipline is Key to Market Stability

HARDI wholesalers reported today that the key to this current market is to be disciplined as you go about your business. The wholesalers, who provide galvanized steel and other products to the mechanical contractors around the United States and Canada, told SMU and other wholesalers on their monthly steel conference call, that business conditions continue to be decent although many reported their customers as having pulled forward their summer steel needs during the months of April and May in order to beat the price increases.

Galvanized steel prices were reported to be stable even though lead times have shrunk and their steel mill suppliers are delivery orders early. As one wholesaler executive put it, “I would say the mills are being a lot more disciplined than the service centers. Our steel shipments have suffered a little because we have chosen not to sell strictly off of floor costs.” He went on to say, “I would like to see mills remain disciplined so things stay firm for the next month or so. I never trust the mills and it is unusual for prices to stay steady, certainly to stay steady in the $40 to $42 base range.”