HARDI Members Still Optimistic About Demand in HVAC

Distributors of galvanized steel to the HVAC industry remain surprisingly positive despite steel prices that have been on the decline for more than six months. While there is some variance by region and market segment, members of the Heating, Air Conditioning & Refrigeration Distributors International generally expect solid demand for their products at least through the end of this year. Said one HARDI member during the trade group’s monthly conference call this morning: “I am trying to wrap my brain around and reconcile how it can be so good in our industry yet talked about so negatively in the periodicals.”

Steel Market Update data shows the average price for hot rolled steel has slid to about $480 per ton from levels above $900 earlier this year. The price of galvanized steel is around $670 per ton, down from $775 in mid-August. SMU’s Steel Buyers Sentiment Index has declined along with prices to a reading of +26, its lowest level since 2013. “Although still on the optimistic half of the scale, that reading shows a good deal of pessimism in the marketplace—a confluence of various factors including low steel prices, iffy demand and all the impeachment talk in Washington that is weighing on everyone’s mind,” said SMU Executive Editor Tim Triplett.