HARDI: HVAC Market Looks Positive in New Year

The new year has gotten off to a positive start, though declining steel prices remain a concern for members of the Heating, Air-conditioning and Refrigeration Distributors International, who supply steel products to the HVAC market. As one HARDI member commented during the trade group’s monthly conference call on Tuesday, “Some of us feel like Alabama’s football team today, a bit nauseated. Selling steel that you bought when the price plateaued is not for the faint of heart. But demand is still decent. Contractors have a lot of work going on.”

Steel prices have been on the decline since mid third quarter, reported John Packard, Steel Market Update president and publisher. Lead times for galvanized are short at less than seven weeks as the mills remain willing to negotiate on spot orders. The price of galvanized has dropped below $40/cwt as domestic producers have priced their products aggressively to compete with imports. “And I think there is room for prices to fall even further,” Packard said. “Scrap is settling down $30-40 a ton for January. That does not behoove the mills to go out for a price increase right away.”