The agreement to terminate Section 232 tariffs on Canada and Mexico and all retaliatory tariffs was welcomed by many industry associations. As Prime Minister Justin Trudeau said in his announcement remarks on Friday, it was “pure good news.” “On behalf of the membership of the CSPA, we thank the Government of Canada for its significant […]
Sales of HVAC products remain fairly strong in most parts of the country, but prices don’t fully reflect that demand, reported members of the Heating, Air-conditioning and Refrigeration Distributors International in their monthly conference call. “I still think the market is fragile,” commented one HARDI member. “The mills have a lot of fundamentals in their […]
Members of the Heating, Air-conditioning and Refrigeration Distributors International, wholesalers of galvanized sheet and coil products, reported steady and strong demand in the HVAC market so far in 2019, but also growing concern about the direction of steel prices. One HARDI member on the trade group’s monthly conference call today described conditions as “somewhat fragile.” The […]
We gathered mixed results regarding flat rolled and plate steel pricing over the past two days. When we say mixed, we don’t mean some prices falling while other prices were rising. What we found was pricing stable to rising. We heard from a number of buyers that there were mills still actively pursuing prices at, […]
The new year has gotten off to a positive start for members of the Heating, Air-conditioning and Refrigeration Distributors International (HARDI), who supply steel products to the HVAC market. Most are optimistic about business, at least in the coming quarter, but comments during their monthly conference call today reflected some disagreement over steel prices. “We […]
The new year has gotten off to a positive start, though declining steel prices remain a concern for members of the Heating, Air-conditioning and Refrigeration Distributors International, who supply steel products to the HVAC market. As one HARDI member commented during the trade group’s monthly conference call on Tuesday, “Some of us feel like Alabama’s […]
How long will this economic cycle last? That is the difficult question HARDInomics posed to Anirban Basu, Chairman and CEO of Sage Policy Group. Currently, the economy is at the peak of an economic cycle, said Basu, and is experiencing a “49-year low in unemployment, a monthly job creation winning streak that is unprecedented, surging […]
It has been a busy week for Steel Market Update. I spoke at the HARDI annual conference in Austin, Texas, on Sunday and I was in Atlanta on Tuesday evening and Wednesday working with our web developers. I am in the office on Friday. Next week I will be in Toledo, Ohio, on Monday through […]
On Sunday, the HARDI galvanized steel council met to discuss what has been happening in the industry that is impacting their relationship with their steel suppliers. John Packard, President & CEO of Steel Market Update, along with Josh Spoores, Senior Analyst for CRU, discussed the status of steel prices and the forecast for 2019. The […]
It has been a beautiful weekend in Austin, Texas, where I spoke earlier today (Sunday) at the annual HARDI conference. I spoke at the steel council, which consists of HVAC wholesalers who sell galvanized sheet/coil products, manufacturers supplying the wholesalers and a couple of service centers who sell galvanized sheet and coil to the wholesalers. […]
We had a great webinar on Wednesday, despite some technical glitches. I am looking forward to making webinars a standard practice for Steel Market Update. We do not yet have a date/subject set up for the next webinar. I am traveling this weekend and early next week. I will be speaking on Sunday morning in […]
Last week, Steel Market Update conducted our mid-November analysis of the flat rolled and plate steel market trends. During the process, we reviewed demand, lead times, negotiations, service center spot pricing, steel pricing and a myriad of other important issues of interest to buyers and sellers of hot rolled, cold rolled, galvanized, Galvalume and plate […]
Steady demand in the HVAC sector is offsetting concerns about declining steel prices, leaving members of the Heating, Air-conditioning and Refrigeration Distributors International hopeful about their prospects in 2019, reported HARDI members during the trade group’s monthly conference call on Tuesday. The distributors of galvanized steel products have seen prices slide by about $5/cwt since […]
It should come as no surprise that Big River Steel has decided not to sell the company. From my perspective it should be no surprise because I don’t think any other mill is willing to pay a premium over what it cost to build the mill, and I don’t think the owners of BRS wanted […]
The threat of any disruption at either U.S. Steel or ArcelorMittal USA is now off the table as AMUSA has reached a tentative deal with the United Steel Workers. U.S. Steel had reached an agreement a couple of weeks earlier. Now the industry focus is going to be on how much supply is coming online […]
I will be in Houston, Texas, on Wednesday and Thursday of this week as I am speaking to two groups, the Industrial Packaging Alliance of North America (IPANA) and the Reusable Industrial Packaging Association (RIPA). Member companies are producers and re-conditioners of a wide range of industrial packaging including steel, plastic and fiber drums, as […]
With the market sending mixed signals, distributors of HVAC products are keeping inventories lean as they wait to see if the price increase just announced by the steel mills gains any traction. “You can make a case for prices to go either way,” said one member of the Heating, Air-conditioning and Refrigeration Distributors International (HARDI) […]
It is always a struggle to find the proper footing after the domestic mills make a price announcement that, on its face, appears to be a way of stopping the sub-$800 offers and put a floor (however temporary) to the market. To me, it is quite telling when one or two mills that normally follow […]
I am back in the office, at least for a few days, trying to catch up on paperwork that has been piling up, as well as working on our SMU Service Center Inventories report. I hope to have our “Flash” report out on Sunday. The “Flash” report gives a snapshot of how the data is […]
Distributors of products for the HVAC sector are keeping a tight rein on inventories as pricing for galvanized steel continues to weaken. The wholesalers are seeing pressure from customers postponing orders in anticipation of better prices down the road. “It appears customers are living hand to mouth, waiting to place any large orders until they […]
Boom, zinc has collapsed taking a big hit on Wednesday when it dropped to $1.05 per pound. At the beginning of 2018, zinc was trading over $1.60 per pound. The $1.05 per pound level was last seen in late fourth-quarter 2016. Yesterday, during the HARDI steel conference call, coating extras for galvanized steel were discussed. […]
How sustainable are the high steel prices in the United States? Steel Market Update sources point to a number of risk factors that buyers should consider. One service center general manager told us flat rolled and plate prices could only be threatened by an increase in imports. “Sharp price declines are caused by sharp increases […]
We are sliding into summer and so far (knock on wood) we are not hearing of any erosion in demand. Those with whom we have spoken over the past week are optimistic about business, although concerned about the uncertainty caused by the Section 232s and now the escalation in trade issues with China using the […]
Demand remains strong and prices for galvanized steel have begun to level off after rising for most of the year, which is positive news for the HVAC industry. However, a big decline in foreign imports could dramatically reduce the availability of coated steel later in the year. “In the fourth quarter, there could be quite […]
Steel prices are way up and likely to move even higher given events on the trade front. But, so far, they have not hurt demand in the HVAC sector, reported members of the Heating, Air-conditioning and Refrigeration Distributors International (HARDI) on Tuesday during the trade association’s monthly steel conference call. John Packard, publisher of Steel […]
Demand remains strong in the HVAC sector despite the high steel prices, but distributors share an uncomfortable feeling that the favorable conditions may not last. “Business is good, and prices are high, but they are going to fall. When is anyone’s guess. You just have to try to protect yourself and have the least amount […]
Distributors of products for the HVAC sector expect prices for steel, especially galvanized, to drop in the coming weeks or months. Demand remains strong, they report, but they are keeping inventories lean in anticipation of declining prices. “There is a greater likelihood that prices will go down than go up. With the lead times being […]
Economic growth is expected to continue in 2018 followed by a mild recession in 2019, says ITR Economics. Concern over looming U.S. tariffs on aluminum and steel, as well as retaliatory Chinese tariffs, aligns with the HARDI/ITR quarterly forecast of macroeconomic deceleration in the U.S. economy late in 2018. Steel Market Update is a member […]
ITR Economics continues to expect economic growth in 2018 followed by a mild recession in 2019. Concern over looming tariffs aligns with the HARDI/ITR quarterly forecast of macroeconomic deceleration in the U.S. economy late in 2018. Steel Market Update is a member of an association connected to the construction industry called HARDI, the Heating, […]
We have been struggling with the decision as to when we should make an adjustment to the SMU Price Momentum Indicator. The issue that has been holding us back for the last week or two is the role the government is playing in the steel market, which muddies the water. We have made the decision […]