Steel Mills
March 31, 2020
HARDI Members in OK Shape as Construction Lags the Downturn
Written by Tim Triplett
Business remains surprisingly strong for wholesalers who sell galvanized steel products to the HVAC sector, considering the devastating impact of the coronavirus on the economy. In a conference call this morning, members of the Heating, Air Conditioning & Refrigeration Distributors International (HARDI) said the construction industry has dodged the worst of the virus’ effects so far, though that is likely to change in the coming weeks.
“Your business is about to change, and it may be more profound than you imagine,” said John Packard, president and publisher of Steel Market Update. Steel prices are moving lower, lead times for spot orders from the mills are shortening, and the American Iron and Steel Institute reported that the mill capacity utilization rate dropped by 10 percent last week to an average of 71.1 percent. Scrap prices are forecast to decline by a further $30-60 per ton in April, which will give the minimills room to lower finished steel prices further in pursuit of what demand remains in the market.
