Steel Markets
Hot-rolled coil sources lament stagnant conditions
Written by Kristen DiLandro
October 3, 2025
Participants in the hot-rolled sheet market expressed frustration with the continuing lack of demand this week.
For another week, sources with plate and coil businesses lamented that the HR market lacks the little bit of dynamism found in the plate market.
One theory suggests that struggles in the domestic automotive industry are trickling down into the broader steel market.
Citing drops in second-quarter earnings from Ford Motor Co., General Motors, Tesla, and Stellantis, a West Coast-based service center associate noted the correlation between losses and lack of demand for automobiles. The lesser demand for automobiles leads him to believe that fewer cars will be produced, and therefore, less HR will be consumed.
“The auto industry isn’t doing as well now, and they are the largest consumer of HR! Plate is moving more because other industries are doing better,” he noted.
The same service center associate does not expect coil markets to heat up this year.
“The 4th quarter is traditionally a slower quarter with the holidays around the corner and some mills doing maintenance during this period. We don’t even carry cold rolled anymore because the demand is so weak,” he said.
A Midwestern service center operator finds the monotony of the market disconcerting.
“Nothing has changed in my world. Prices are still the same. Demand is still the same. It’s groundhog week all over again,” he stated.
He added, “I should sell Girl Scout cookies! There is always a demand, and no one argues over the price.”
A different Ohio Valley-based service center source remains convinced that sheet prices are holding due to the abundant market supply. However, he is curious to see what mills will do because, he says, there is ample plate supply, but they still issued spot price increases.
“Plate in general has better market infrastructure, and machinery seems to be ramped up and working well. Right now, HR is just steady, flat. Prices, for us, have stayed more or less level. I can’t wait for this period to improve,” he commented.
The source does not foresee any changes until the overall market has more certainty.
“It may take another quarter or two before we see any turnaround,” he added.
This week, SMU assessed the average HR spot price at $795 per short ton, ex-works domestic mill.
Kristen DiLandro
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