Buyers say plate market rejected last round of mill hikes

Despite the current climate, sources are hopeful conditions in the coming year offer promise.

Market insights

In the Midwest, a service center associate expects an additional price increase because, he says, the market never accepted the initial mill hike a few weeks ago. He believes that stronger indicators for demand in 2026 will drive mills to lock in a higher bottom ahead of increased demand.

“The last increase, we all know, didn’t stick. It looks like it has stopped the slide at least for now,” he said.

“Day to day business is very spotty, but larger projects are pulling us through. Some service centers are supposedly restocking,” he noted. “Maybe folks are thinking the bottom is here and trying to get ahead of another announced increase, imports are low as well.”

Hea added, “The plate market is poised to turn upwards, it’s just a matter of when.  Any increase in day-to-day demand will help.”

The operator of a mid-sized service center in the East believes the mining equipment industry, data center construction, and the energy industries will ignite demand, turning the current market around.

“Prices are stagnant and business is not good this week. Your (SMU) prices are correct and lead times remain at 4 to 5 weeks, maximum,” he said. “November looks like it will be rough, but December and January will be better. There are lots of big projects coming up.”

A mid-sized Ohio Valley service center source underscored the points made by others in the plate market.

“Depending on the fiscal year, service centers may not add any new steel,” he said. “Especially as demand remains low, you don’t want to think about how you’ll get rid of it.”

The source noted there have been no real changes in demand. “The SSAB increase is all but gone. It’s about $52/cwt for me because I purchase less volume, no delays over here.”

“I think the price note from SSAB was meant to stop the slide,” he added. “There isn’t much time left before the end of the year, so business will remain spotty at best.”

Current plate prices

The latest price assessment from SMU on Oct. 28 found transaction prices in the spot market for plate ranged from $940-1,040 per short ton (st). The price average is $990/st. The equivalent week of 2024 price of plate was $895/st.