Analysis
February 5, 2026
Sheet buyers find firmer prices and stronger demand
Written by Kristen DiLandro
Sheet market participants said conditions this week were more stable than in past weeks, but they remain cautiously optimistic overall.
So far, regional winter storms, sources told SMU, haven’t caused any notable hiccups in production. However, some anticipate potential delivery-related complications caused by frozen waterways used for barge transport, or hazardous driving conditions.
A service center sales professional in the Midwest noted it’s especially concerning when steel has been loaded for transport but freezes while stored or in transit. When this happens, quality-assurance (QA) risks rise. Issues like flash rusting, surface degradation, corrosion, and other handling risks crop up when current weather conditions arise. However, the sales pro said he has not experienced any QA concerns so far.
The materials’ manager with a large-scale distributor said operational issues, not weather, are wreaking havoc on the market.
Overall, market participants said demand and pricing conditions improved compared to previous weeks.
Market commentary
The first sales professional (who noted QA risks) also said January’s market showed promise.
“But December was a really bad market, dismal. January was better by comparison, which doesn’t say much,” he said. “This week was actually a strong week, numerically speaking. My customers are optimistic about the year ahead, but my feeling is that until I see more consistency I’m not convinced.”
He also mentioned evolving supply-side dynamics, saying he is in the business of filling smaller spot orders at competitive prices immediately.
The sales professional prefers putting off longer-term commitments due to fears he won’t be able to fulfill orders if there are supply shortages. His method assures him stronger prices upfront in a way that larger-volume, long-term engagements might not.
The materials manager told SMU constraints around slab availability have limited some producers. As a result, supply is likely to remain limited in February and March, ensuring prices hold or rise.
He said, “While service center inventories consider what’s in the pipeline, that can be misleading if there is a shortage, as there currently appears to be in Feb. They’re just kicking the can down the road until inventories catch up. We haven’t seen a clear increase in demand. If people must go out and buy on spot, it will be hard. It will be tight.”
The same manager did not see increases in demand this week.
He noted, “Still fundamentals, though, are just not clear. This is a supply-side dynamic, and so other mills are not going out of their way to ramp up production. [They] will allow the bottleneck to drive prices.”
The manager concluded, “It could last through April, with February orders being pushed to March and March likely onto April.”
A different Midwest-based service center associate experienced stronger demand for hot- and cold-rolled coils on the week.
“Inquiries that lead to sales were higher, yes. We always want more, but we hit price targets,” he said.
One West Coast market participant stated mills are working hard to increase sheet prices for spot buys. He agreed demand improved in the last month. And he added the caveat that by historical standards demand isn’t all that strong. This tension, he thinks, will force mills to lower prices.
The same West Coast-based service center associate believes if mills continue to push higher prices, while operating at leaner capacities, customers will welcome imports.
“Domestic mills are getting busier but are not producing everything the market wants, currently. I do know that there is very little negotiating going on and they are strongly pushing prices upward out there,” he said.
He added, “With bad weather back East, I expect scrap to go up again in February and the price increases to continue. The mills will probably raise their coating extras for galvanized soon, I would imagine as well. Manufacturing has gotten busier, which helps the mills out. We’ll see where this takes us in the coming weeks.”
Prices
On Tuesday, Feb. 3, SMU’s weekly price assessment found that the average HR price rose by $5 per short ton (st) from the previous week, lifting the average price to $965/st. Transaction prices for spot buys of HR ranged $950-980/st. The $30 spread resembles pre-Covid market pricing dynamics.
In the equivalent week of 2025, HR spot averaged $725/st. This week’s price reflects a 33% increase on the year. SMU found that CR prices coincided with increased HR prices, averaging a $5/st increase over last week. The new range for CR is $1,080-1,140/st with an average transaction price at $1,110. Compared to the equivalent week of 2025, when the CR price averaged $910/st, the current price is up 22%.
Galvanized steel got a $5/st bump to an average of $1,075/st, and ranged from $1,040-1,110/st. This week’s average is up 27% over the same time last year.
Meanwhile, Galvalume prices held at the same range as last week at $1,060-1,140/st. The average transaction was $1,100/st, up 22% compared to the same week of 2025.
All prices are ex-works, domestic base prices unless otherwise noted. To analyze historical pricing data, check out the SMU Interactive Pricing Tool.
