Sheet market participants say sales still in a slump

Two tariff-related spikes have been the only real drivers of business to date in 2025, several sources said.

The first major influx of orders happened after President Donald Trump announced, on Super Bowl Sunday in February, across-the-board Section 232 tariffs of 25%. The second spike, they said, came after Trump announced, in late May, that he would increase Section 232 tariffs to 50%.  

The rush to stock steel before the tariffs kicked in allowed buyers to build high inventory levels. As the year progressed, most thought the levels would be drawn down and sales would increase. But while many market participants say they are hearing of “holes” in inventory, most also say that sales remain light.

And, so far, Trump’s expansion of tariffs on derivative steel products have not stirred the sheet market, sources said.

A Mid-Atlantic service center source said he was awaiting more orders before restocking.

“We are not seeing any customers that are busy. Most are buying just what they need for the orders on hand. Every week is becoming more like ‘Groundhog Day’,” he said, noting the epic 1993 Bill Murray comedy.

The owner of an Ohio-valley based distribution company is not seeing much demand or hearing much about restocking either. He noted that in 2024, some service centers and distributors actually carried more inventory due to uncertainty around the US Presidential election. But now, as then, most people are ordering only “on an as needed basis.” 

“Prices are completely all over the board. … And sales are the same, too slow,” he said.  

One sales professional at a Midwest-based service center said this August has been one of the worst months of his career. “Sales are so quiet. I looked across my records and found this month is the lightest I’ve had since a one-off in 2023. November 2024, by contrast, was the best months of my career,” he said.  

Asked whether sales were stable at low levels, he agreed. And he said he doesn’t see the kind of end-market demand that would justify him placing large orders.  

“From what I can tell, there are no mill hold ups. The momentum from construction has been decent but has recently slowed down a bit. Large factory construction and customers that build or manufacture general products have slowed. Agriculture is slow, but this the time of year it slows down,” he said.

A third market participant located on the West Coast hopes the market will improve after Labor Day and is optimistic that service centers will add inventory then. “The market won’t pick up until after next week. Projects are coming online, and that will start to show this fall,” he said.

Prices ping-pong in the $800s/st range

SMU most recently assessed HR prices at $805/short ton (st), down 1.8% from the week ended August 12 when prices were $820/st. Compared to the same week in 2024, prices are up 19.25% from $675/st. You can find that information in the SMU interactive pricing tool, which is here.