Hot-Rolled Coil Steel Price
US Midwest domestic — 12 months
Commodity Prices
| Commodity | Price | Change | Unit |
|---|
| Hot-Rolled Steel (HRC) | — | — | $/ton |
| Cold-Rolled Steel (CRC) | — | — | $/ton |
| Aluminum | — | — | $/lb |
| Copper | — | — | $/lb |
| Zinc | — | — | $/lb |
| Nickel | — | — | $/lb |
Why Steel Prices Matter
Steel is the primary raw material for fasteners. When steel prices rise, fastener manufacturers raise prices — giving distributors both margin pressure and repricing opportunities.
Key dynamics:
- HRC price increases typically flow to fasteners with a 60-90 day lag
- Price spikes create opportunity to lock in inventory at current rates
- Customers become more price-sensitive during volatile periods
- Import tariffs (Section 232) add 25% to imported steel fasteners
Total US Construction Spending
Billions of dollars — FRED series TTLCONS
Housing Starts
Thousands of units — FRED HOUST
Building Permits
Thousands of units — FRED PERMIT
Texas Construction Context
Texas consistently leads the nation in building permits and construction spending. DFW and Houston are the top two MSAs in Texas for commercial and residential construction.
- DFW leads in data center and corporate campus construction
- Houston leads in industrial, petrochemical, and energy infrastructure
- Both markets have strong multi-family residential pipelines
- Construction fastener demand correlates closely with permit activity
ISM Manufacturing PMI
Above 50 = expansion, below 50 = contraction
Industrial Production Index
FRED INDPRO — seasonally adjusted
Capacity Utilization
FRED TCU — % of capacity in use
US Fastener Imports
Key trade data for the US fastener market
US Fastener Market Size (est.)~$12B annually
Import Share of US Market~50%
Section 232 Steel Tariff25%
Section 301 China Tariff (Fasteners)25%
Top Import Sources
US fastener imports by country of origin
Tariff Impact
Current tariff environment:
- Section 232 adds 25% tariff on steel and aluminum imports, raising domestic fastener prices
- Section 301 adds 25% on Chinese-origin fasteners specifically
- Taiwan, Japan, and India have gained share as China's share declined
- Domestic Buy American preferences benefit US-sourced distributors
- Tariff exclusion processes create uncertainty in import pricing
Opportunity: Customers seeking domestic-sourced alternatives to avoid tariff uncertainty — GNS can position as a reliable domestic supply chain.