HARDI Members Wonder: How High Can Galv Go?

Galvanized steel prices have skyrocketed by more than $200 per ton since August, leaving wholesalers who serve the HVAC market to wonder how much higher the price can possibly go before it begins to cut into demand. On a conference call this morning, members of the Heating, Air Conditioning & Refrigeration Distributors International (HARDI) said they expect demand and pricing to remain strong into the first quarter next year, but they expressed concern about the long-term prospects for nonresidential construction.

Steel supplies remain tight as the mills are slow to bring back idled capacity, lead times extend, scrap prices are up, and inventories and imports are near historic lows—all factors that promote higher steel prices. “A price of $42.50/cwt is a legitimate number now for galv. The question is how long it will last,” said one executive on the call.