Market Advisory — Price and Availability of Light Steel Framing Products

Dear Valued Customer,

We are writing to give you advance notice that steel stud, track and related light-gauge framing products are at high risk of further price increases in the coming weeks and months. Conditions in the Canadian steel market have tightened sharply this fall, and we want you to have this information before bidding, budgeting or placing orders for upcoming work.

This advisory is in addition to the previously announced 15% manufacturer price increase on all steel framing products, which takes effect November 2, 2026. The market conditions described below could lead to further increases beyond that adjustment as early as January 2027.

1. Stelco has idled its galvanized production in Hamilton. On September 28, 2026, Stelco's owner, Cleveland-Cliffs, announced the indefinite idling of the cold-rolled and coated (galvanized) lines at Hamilton Works, with temporary layoffs of up to 500 workers. Galvanized and cold-rolled sheet is the base material for steel studs and track. The loss of a major domestic supplier has made galvanized coil harder to secure in Canada, and the federal government's dispute with Cleveland-Cliffs over the layoffs has not yet been resolved.

2. Higher tariffs on U.S. steel. On September 8, 2026, Canada raised its counter-tariffs on many U.S. steel products, including galvanized sheet, to 50%. The United States supplied more than half of Canada's galvanized and coated sheet imports in the first nine months of 2026, so this directly raises the cost of replacing lost domestic supply.

3. Tight import quotas on offshore steel. Since December 26, 2025, steel imported from countries without a free trade agreement has been limited to 20% of 2024 volumes, with a 50% surtax on anything above the quota. These measures have been extended to June 2027.

4. Rising North American mill prices. U.S. hot-rolled coil prices reached roughly US$1,255 per short ton in October, the highest since 2022 and up about 52% year over year. Scheduled mill maintenance through December is expected to tighten supply further.

Eastern Canadian stud manufacturers are reporting repeated increases in cold-rolled steel costs, most recently in mid-October, along with difficulty obtaining the volumes they need. These cost pressures are expected to flow through to finished framing products.

• Further price increases are likely on steel studs, track, furring channel and related accessories. Manufacturers provide 60 days' notice of price increases. As set out in your quote conditions, steel framing prices on your quote are subject to these manufacturer changes, and we will share each manufacturer notice with you as we receive it.

• Some gauges and sizes may become hard to get. We expect minimal impact on light-gauge and 33 mil products. Structural framing in 43 mil and heavier, along with G90-coated products, faces a greater risk of shortages, extended lead times and larger price increases, because these products depend most on the galvanized coil that is now in short supply in Canada.

• Framing may need to change to keep your schedule. If a specified gauge or size is unavailable when you need it, the fastest option may be an approved substitution, such as a different gauge, stud depth or spacing. Any substitution must be reviewed and approved by the project's design engineer or architect before installation.

• Please review your quote conditions. The price terms that apply to your project are set out on your quote. For larger projects, the quote notes include a Steel Stud Price Protection cap. Cumulative manufacturer increases beyond the cap result in adjusted pricing. If you have questions about the terms that apply to your project, please contact your sales representative. Our complete Sales Terms & Conditions are available at help.morinsupply.ca.

• Include an escalation clause in your contracts. Given current market volatility, steel mills and steel stud manufacturers cannot predict pricing over time. We therefore strongly recommend including a material price escalation clause in your bids and contracts, particularly for projects that run over several months or years, so that manufacturer price increases can be passed through in line with the conditions on your Morin Supply quote.

• Confirm orders early for known upcoming projects to secure current pricing and material.

• Share your schedules and quantities with your sales representative, including the gauges and sizes you need, so we can secure material ahead of time.

• Inform your design team now. Let them know you may need to request a last-minute design change to accommodate available stock. Having substitute gauges or sizes pre-approved before construction starts can prevent delays if a specified product becomes unavailable.

We are working closely with our suppliers to secure material and minimize the impact on your projects. We will continue to keep you informed as conditions develop.

Thank you for your continued business and understanding. If you have any questions, please contact your sales representative.