Steel Mills
May 19, 2020
HARDI: Long-Term Construction Demand a Concern
Written by Tim Triplett
Wholesalers of HVAC products have weathered the pandemic surprisingly well so far and are more concerned about construction demand months from now than they are about their near-term prospects.
Consider what has happened since April as a result of the market’s response to the virus: Steel mills are operating at just above 50 percent of capacity; the U.S. oil rig count is at 339, down from more than 800 at the beginning of the year; service center inventories have inflated to more than 3.5 months of supply due to the drop in demand; and the base price for galvanized steel has dipped to the low $30s/cwt, among many other factors at play as the economy stuggles to recover.
