Distributors/Service Centers
March 25, 2026
Galvanized market tightens as freight costs rise and inventories thin
Written by Laura Miller
The galvanized sheet market continued to tighten in March as distributors and service centers reported firm demand, low inventory levels, and rising transportation costs. Participants on the monthly HARDI sheet metal and air-handling call on Tuesday described a market with constrained supply and steady upward pricing pressure.
Supply and demand
Several distributors said supply has been adequate but increasingly affected by logistics. One said, “Supply has been relatively normal… more so now this month supply [has] been affected by transport, with trucking… freight surcharges, things like that.” Demand for his company was “decent” and “up a little bit,” though he noted the “rate of growth is slowing.”
Others reported a firmer tone. Another distributor said demand is “stable” with “a little bit of an uptick.” He added that some mills “do not have production for May… they’ve actually either sold out for May, or they are just booked on contract tons.” He linked the tightening to sharply lower imports, saying the drop in foreign tons is “having more of an impact than… 60 days ago.”
Service centers echoed the same themes. One service center participant on the call reported “inventory levels are good,” but said supply remains tight on the spot side.
He noted strong activity tied to data centers and specialty coated products, saying, “the min spangled, the aluminized, the Galvanneal… seem to be going gangbusters.” He also warned that replacement costs on light-gauge galvanized are rising faster than some buyers expected.
Another service-center participant said March demand improved simply because “most people… will probably see a lot better March than they did in February.” He expects galvanized to follow hot-rolled sheet higher (see Fig. 1 below), noting the typical spread and rising input costs: “Zinc tables [are] higher and transportation costs and everything… that’s going to trickle off in the market as well.”
Freight woes
Freight was a major concern across the call. One participant said carriers are “charging whatever they want” and that ocean freight is becoming unpredictable. He reported rumors of canceled sailings and said some imports originally scheduled for May-June “are now going to be into July.” He also warned that foreign mills are quoting freight at double prior levels and, in some cases, saying, “We’ll let you know what the cost is based on when we ship it.”
Inventory tightness
Inventory tightness was a recurring theme. What participants described jives with SMU Editor-in-Chief Michael Cowden’s comments on the call that service-center inventories have been sliding for months, based on SMU data. He emphasized that current levels match the lowest point in more than a year.
One call participant said, “Inventory levels are very low” across flat-rolled products, and that large public service centers appear to be carrying less than usual. Mills remain behind on deliveries, and automotive demand is absorbing significant tonnage: “Automotive is currently underway and rolling… automotive is going to get priority over anything else,” he commented.
Pricing power
Participants generally agreed that mills hold the advantage in the near term, consistent with SMU’s survey, which showed mills are holding firm on prices and aren’t cutting any deals. As one call participant put it, “The mills [are] in the driver’s seat the next 90 days, and they know it.”
Despite rising costs, some on the call questioned whether distributors are fully passing through the increases. One participant said, “We sell ourselves short… when you’re seeing the mill costs go up and you’re not mirroring that.”
In this week’s pricing assessment, SMU pegged galvanized sheet products at $1,120 to $1,180 per short ton. The average of $1,150/st is $10 higher week over week. Lead times for galvanized range from six to 10 weeks, averaging eight weeks through our latest survey. See Fig. 1 below to see how galvanized prices are trending alongside hot-rolled sheet.
SMU participates in a monthly steel conference call hosted by Heating, Air-conditioning, and Refrigeration Distributors International (HARDI) and dedicated to better understanding the galvanized steel market. The participants are HARDI member companies, wholesalers who supply products to the construction markets. Also on the call are service centers and manufacturing companies that either buy or sell galvanized sheet and coil products used in the HVAC industry and are suppliers to HARDI member companies.
