Market sources say regional activity is dictating plate demand

Demand shows signs of revival  

A service center associate on the West Coast stated that activity remained relatively flat this week. He noted that the consistent demand for plate comes from customers that are building large AI data centers.  

“Our busiest accounts are doing data centers in Arizona and in the Pacific Northwest,” he said.  

Currently, the US has thousands of data center projects in development from Virginia to Washington state. As an increasing number of projects gain permits and approvals, the West Coast service center associate’s experience with growing demand and price stability may be a positive indicator for other steel market participants in other regions.  

Unfortunately, there are many conflicting sources of information about which states are projected to have the most data centers in the coming years. However, most sources appear to agree that California, Texas, Virginia, Arizona, and Illinois are slated to lead the charge in data center development.  

Soft demand persists 

An East Coast based distributor stated that despite the quiet market, mills are beginning to hold the line on their prices.  

“If one has an order to place, the mills will listen.  Although they seem to be starting to dig in as they will close November soon, and rumblings of another price increase announcement are getting louder. The first mill increase did not stick, maybe try another to get something, it’s an interesting time of year to try, though,” he said.  

The same distributor said he expects that data centers will eventually add demand, adding that he is seeing more activity in the Southeast region of the country than from the Northeast. 

He continued, “Bridge project demand is OK, as is above and below ground storage tank. Shipbuilding looks as if it is ready to take off. The market is in need of some stability and monies pumped in from the private sector. I’m not sure that will happen until interest rates decrease more, and we find a true bottom in steel prices.” 

In the Ohio Valley, a service center associate serving primarily the Midwest remarked that the current market isn’t ideal, but he remains optimistic that the first quarter of 2026 promises more certainty. The certainty, he said, will give his customers the confidence to place orders again.  

 “I don’t see prices moving up any more until January. The business is just not there. When line pipe orders begin to kick in for SSAB, that will affect lead times and pricing for plate. I expect the market to shift then,” he said.  

Meanwhile, in the Northeast a distributor confirmed that his base prices for plate aligned within cents to the average price assessment SMU published on Tuesday. He is experiencing incongruency between mill quotes for deliveries and their expedient arrivals.  

He gave this example:  

“It’s funny because I received a quote for December delivery from rolling. Then once I placed the order it shipped the next week.” 

He also stated that, “Sales are good. Demand is decent. Lead times are fast. Stock is good and tariffs are awesome.” 

The plate market in 2024 

In the equivalent week of 2024, plate prices on the spot market were assessed at an average price of $910/st.  

The popular discourse in the market during the fall of 2024 was largely around what the outcome of the US election would mean for the steel industry. Then candidate, Donald Trump, floated the idea of increasing tariffs on steel. Upon securing victory, President Trump said he planned to impose steel tariffs on Canada.  

One source told SMU at the time, “Demand just isn’t there yet, and we’re still all waiting to see what Trump is going to do on tariffs. He’s still negotiating publicly and it’s yet to be determined.” 

Interestingly, the same tariff uncertainty persists today. President Trump has stated that he is willing to negotiate deals with other countries at any time. The flexibility in the President’s tariff negotiation policy leaves many in the steel market on edge.  

A 2024 steel buyer’s comment sounds eerily similar to what sources in the plate market are currently reporting.  

“Probably going to be in the first quarter before we see any pricing change. Demand for plate isn’t there. It’s a tough market still,” the buyer said.  

All spot prices are base, ex-works domestic mill unless prices unless otherwise noted.