Manufacturers/End Users
January 16, 2026
Sheet buyers remain cautious about market conditions
Written by Kristen DiLandro
Though they’re hopeful, domestic sheet market sources didn’t share a bullish outlook on the market this week.
Unlike their plate market counterparts, who reported experiencing strong market demand, sheet market sources said they remain cautious, especially when it comes to restocking.
Service center representatives throughout the US said that while hot-rolled demand remained consistent, sales volumes are not as high as they’d like.
The same sources said they are eager to see more orders fill their books as lead time stretch closer to spring, which typically brings more favorable weather to kick-off infrastructure and construction projects.
And some hot-rolled (HR) coil market participants say there’s a potential to restore some buyer confidence by halting Section 232 tariff negotiations. Maintaining the tariff, they think, assuages fears that steel prices could decrease at any moment. Such fear kept the market paralyzed at times in 2025, they added.
Voices from the market
An Ohio Valley service center source agreed that producers were raising prices. However, he contends that without stable demand, price increases will lose momentum.
“Orders are steady but not as robust as we’d hoped. I think the increases are losing steam. Lead-times are still moderately normal with hot- rolled coil at four weeks, and cold-rolled and galvanized at six weeks,” he said.
The same associate noted that supply concerns could factor into rising producer prices. He said this will force buyers to accept the increases.
However, he said that market consolidation puts smaller centers, like his, in an advantageous position.
“The bigger a company gets the more cumbersome they become. Small service centers move on a dime and don’t have to get layers of approvals or worry about investors and shareholders,” he said.
A Midwest service center source said mills appear to hold all the pricing leverage right now, but volume speaks louder than words.
“It seems like mills have the upper hand, but it depends on who is buying and how much. Tonnage gets the attention,” he said.
Buyers can negotiate with their service center providers, and service centers can negotiate with steel producers. But it requires having the right strategy, he said.
“Consolidation and limited supply could have an impact for a little while, but when buyers get serious in their negotiations, that will be what dictates prices,” he said.
His noted that orders are beginning to pick up. But he thinks demand for long products is better than that for flat-rolled steel. “HR orders are getting a little better. But across the board, long products used in infrastructure and construction components are the bright spot,” he said.
A West Coast source expressed concern over the few end markets driving demand. He said he would feel more confident about the market’s health if a wider array of industries begin demanding steel.
“Business changes so rapidly. Now data centers are all that’s demanding steel. Once they’re built, that’s it. It’s like a warehouse. There’s no need for more steel. Other industries need to start picking up,” he said.
Prices
When SMU conducted its weekly price assessment on Tuesday, HR prices stood at $935 per short ton on average. This week’s average price reflects a 36.5% increase compared to the same week in 2025, when it was $685/st. Use the SMU Interactive Pricing Tool to access our historical pricing data.
