HARDI: Demand Strong in January…But Will It Last?

Acknowledging that “it’s a lot easier to sell steel when the price is going up,” distributors of steel products to the HVAC sector reported strong sales in the first month of the new year despite galvanized base prices that have risen by about $130 in the past 12 weeks to the current $800 per ton.

According to CRU data, the price of galvanized steel has averaged $38.70/cwt or $774 per ton over the past nine years, making today’s price fairly typical. Distributor inventories are somewhat higher than normal at 3.15 months of supply—most likely a combination of buying ahead of further price increases and seasonally weak shipments around the recent holidays.