Distributors/Service Centers
April 17, 2026
Sheet sources are optimistic amidst mixed conditions
Written by Kristen DiLandro
Participants in the hot- and cold-rolled coils market are optimistic about the market’s health.
Their positive sentiment was driven by strong demand and firm prices.
Spot product availability continued to vary due to a variety of factors unique to producers and consumers.
Despite elevated fuel and freight costs, like Nucor’s fuel surcharge for plate, recent inquiry and transaction levels remained consistent.
Market commentary
A West Coast-based service center associate expects price increases to continue and import volumes to increase.
“Some people are busy and other companies not so busy, depending on who your customer base is and whom they’re doing business with. It’s a mixed bag out there. We’re consistent,” he said.
The same source expects demand to hold strong enough to support longer lead times from both domestic and foreign suppliers.
He contends that the peace of mind provided by securing products outweighs the import wait times. Also, noting that import prices, with tariff costs, are generally about the same as domestic products.
The same West Coast participant added, “We don’t have a contract and work off of the spot market. So, I would say, product is pretty available. But on certain products, such as heat-treated items, they may have a longer lead time. We continue to balance our inventory with imported products.”
In the Midwest, a service center operator highlighted elevated consumption levels in the first quarter of the year. He expects the levels to roll over into the second quarter.
However, the operator noted that, as prices continue to escalate, it’s not absurd to think they could hit a peak, then drop precipitously. Or that imports could become more ubiquitous in the US market.
“There’s nothing to stop the price escalation trend from reversing or even just settling. HRC remains strong. The domestic mills are holding the cards and there is little to no import competition,” he said.
He added, “At some point, the continuously escalating price will roll out the red carpet for overseas imports to absorb the 50% tariff.”
A second service center associate in the Midwest said he has no intention of importing steel coils. He found some coil products in shorter supply but said he is confident domestic producers are catching up on orders, which will reduce some of the elongated lead times.
“Pricing is going up. Some lead times are going into June. Nothing has changed since last week as far as usage or activities. I just met with one mill that is quoting into mid-June. They say they should be back in line with other domestic producers by the end of June,” he said.
A mill source said he thinks the market remains cautious.
“Buyers still seem to be suggesting that their businesses are good and have near-term prospects, keeping them in the market for buying steel. However, there is still enough caution out there that buyers are hesitant to load up on more material than they really need,” he contended.
He continued, “That cuts both ways because buyers are not over-ordering from domestic mills, but at the same time, they are not indicating a huge appetite for buying long lead time imports given ocean freight challenges and concerns that steel will not get here until 4Q.”
Prices
In Tuesday’s weekly SMU price assessment, HR prices ranged from $1,035 to $1,065 per short ton (st). The average spot transaction price was $1,050/st, 17% higher than $895/st in the equivalent week in 2025.
All prices are ex-work, domestic mill.
