HARDI: HVAC Demand Strong Despite High Galv Prices

The high price of galvanized steel has not dampened demand, at least not yet, say distributors of HVAC products, who report continued strong market conditions. “The market is somewhat back to normal, just at dramatically higher transaction prices,” commented one member of the Heating, Air-conditioning, and Refrigeration Distributors International (HARDI), during the trade group’s monthly conference call on Tuesday.

Flat rolled steel products have all seen sharp price hikes in response to the Trump administration’s Section 232 tariff of 25 percent on some steel imports. Steel Market Update Publisher John Packard told the group that market base prices for galvanized seem to have peaked for the short term at around $49-$52/cwt, depending on the product and region. That’s up from around $40/cwt at the beginning of the year. “The price of galvanized is high right now, but it has plateaued. I don’t see the mills making any moves to raise it higher unless there is a tightening of supply for some reason,” he said. “Zinc prices have broken off their high, so I don’t think you have to worry about any new zinc extras at this point.”