Newsline

Steel Market Turmoil Expected To Continue

February 26, 2004
/ Print / Reprints /
ShareMore
/ Text Size+
COLUMBUS, Ohio - Galvanized steel price volatility and shortages may continue for the next several quarters, according to distributor members of Heating, Airconditioning & Refrigeration Distributors International (HARDI).

The organization states that as commercial work is coming back, contractors are being hit by higher prices and even spot shortages. Price increases are also being encountered for prefabricated sheet metal, pipe, and fittings widely used in residential work. Distributor inventories partially cushioned the effect of rapidly rising prices by steel manufacturers, the organization said.

According to HARDI, there are many causes for the price increases, and they are generally not related to any aftereffects of steel tariffs that were imposed and then rescinded. One cause is the high demand for steel at a time when there are fewer producers due to mill consolidations. Other causes HARDI believes are contributing to the price increases include a coke shortage, increased transportation costs, and the growing Chinese economy, which has increased worldwide competition for raw materials, including scrap metal.

HARDI points out that to deal with price increases, contractors may want to work with suppliers to help determine material costs at time of delivery and prepare for a worst-case scenario approach on expected prices.

Publication date: 03/01/2004

Did you enjoy this article? Click here to subscribe to The NEWS Magazine

You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

2014 MCAA Annual Convention

Scenes from the 2014 MCAA Annual Convention in Scottsdale, Ariz.

Podcasts

NEWSmakers: Julian Scadden

Training is an ongoing process. Julian will discuss how you can generate maximum return on time and energy invested training by following a three part process. Listen to this podcast to get expert tips on training, tracking and follow up. 

More Podcasts

ACHRNEWS

NEWS 04-21-14 cover

2014 April 21

Check out the weekly edition of The NEWS today!

Table Of Contents Subscribe

SERVICE CALLS POLL

Which statement on service calls best applies to your business?
View Results Poll Archive

HVACR INDUSTRY STORE

plumbing-hvac.gif
2014 National Plumbing & HVAC Estimator

Every plumbing and HVAC estimator can use the cost estimates in this practical manual!

More Products

Clear Seas Research

 

Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications, Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.

DON'T MISS A THING

Magazine image
 
Register today for complete access to ACHRNews.com. Get full access to the latest features, Extra Edition, and more.

STAY CONNECTED

facebook icontwitter iconyoutube iconLinkedIn i con