Analysis
May 29, 2026
Hot-rolled coil market participants accept delays, price increases
Written by Kristen DiLandro
Participants in the hot-rolled coil spot market revealed that growing discomfort with current market dynamics hasn’t deterred them from conducting spot transactions.
Sources told SMU they have no choice but to seek out products for end consumers despite fears of overpaying. Once afraid of overstocking, the same sources contend that the idea of being overstocked at inflated prices isn’t relevant to them in the current market.
Tracking down HR in a timely manner before a competitor could get it to the customer continued to keep participants busy.
A source who operates a service center in the Midwest said that mill constraints on supplying HR have cost them opportunities in their market.
“Business has been strong through May, which has caused us to run out of a lot of stock, and with the mills running late, we are missing a lot of opportunities,” he said. “Customers don’t like price increases, but they do not have much choice. Every week the number keeps climbing, so we are all in the same boat.”
Another service center source in the region said his contract minimums are the only commitment he can get from his mills.
Meanwhile, a mill source said the mill continues to deliver on its high-volume orders.
“All lead times are into August. We have recently transacted thousands of tons for about a half dozen customers,” he stated.
SMU’s Tuesday, May 26, weekly price assessment for spot-market HR ranged from $1,070 to $1,120 per short ton. The average transaction price found was $1,095/st.
