HARDI: Weak Prices Undercut Strong Demand

Suppliers of steel products to the HVAC industry find themselves stuck in a good news/bad news market. Demand remains good as the construction season ramps up, but pricing on galvanized steel continues to weaken. “Demand in the Southeast is still very good, even though there has been a painful devaluation of our inventory,” said one member of the Heating, Air-conditioning and Refrigeration Distributors International (HARDI), during the trade group’s monthly conference call earlier today.

Galvanized steel prices have fallen by about $4.50/cwt in the past eight weeks. Steel Market Update estimates the current market price is running close to $35/cwt, or $700 per ton. “Prices just seem to be in a freefall. We are in pricing territory we have not seen since the fall of 2016,” said one executive on the call.