Final Thoughts

As I move around the flat rolled steel industry, communicating with manufacturing companies, service centers, traders and steel mills, I am receiving mixed messages about the market. A good example is the HARDI steel committee conference call that was held earlier today. HARDI wholesalers, the companies who supply the HVAC mechanical contractors in the building industry, reported a tightening at the bottom of the market while at the same time reporting prices that were a long way away from what the domestic mills were touting when price announcements were made. The wholesalers also reported a weak to weakening price market coming out of the service centers. One wholesaler told the group about service center pricing to contractors, “They are cheaper now than two to three weeks ago. The contractors believe they can get a lower price by playing one [service center] off another.”

Tim Triplett of SMU listened in on the call and reported on it in an article in tonight’s issue.