Distributors/Service Centers
June 19, 2026
HR market sources content with contract volumes, seeking out spot
Written by Kristen DiLandro
Hot-rolled coil market participants report little disruption to their contact volumes, finding timely spot HR proved less straightforward, some sources told SMU.
Many sources reported finding easy access to the maximum volume allotted in their mill contracts. Just as many sources said, they found some domestic suppliers holding contract volumes at half or less of their contract (short) tons.
Recently, all the participants stated that finding any spot HR before Labor Day would be a longshot. However, a Midwestern-based mill source said the supplier can fulfill spot HR orders by August.
Market commentary
One MidAtlantic-based service center source said that he doesn’t expect to see his spot order with a mill coming until next month. Noting that from the time he placed the HR spot order to when he’ll receive the delivery spanned roughly seven weeks.
“Today, if I placed a spot order, I couldn’t get it in seven weeks. One of my regular suppliers keeps giving me the max on my contract. Another has me at half the contract volume. It’s tough because with our customers, nobody wants to wait three weeks for an order,” he said.
A Midwestern-based mill source said the mill is experiencing strong HR spot orders. He believes that the mill is the only domestic producer offering spot HR before Labor Day.
“A very robust book in HR last week, very active. Probably because, I think we have spot HR to offer in the month of August to customers, which resulted in over 10,000 [short] tons of total spot book last week,” he said.
The same mill source also highlighted, “We are getting close to having our August closed on all products, with only HR available in August at about an eight-week lead time.”
A second service center source, located in the Midwest, finds the spot market tough to navigate right now.
“I’m trying to keep up with this ever-changing market of ours. Lead-times continue to be extended with HR being 4 to 6 weeks for contract volumes. I approached four domestic producers last week, and none are selling spot,” he said.
He said that one of the four he approached will open its order book for September shortly, which might help. The steady demand across the market is positive, he notes.
“Business has been great so far this year. It’s much tougher to get spot tons from other service centers. They are keeping it for themselves, or if they do have it to sell, you will pay a premium. This current market is very similar to the COVID time period. Time will tell how long this push for an increase will last. I am guessing when imports are more available and more accessible, mills will stop price increases,” he added.
Prices
On Tuesday, SMU’s weekly price assessment tagged spot market HR transactions from $1,100 per short ton (st) to $1,160/st. On average, spot transactions occurred at $1,130/st.
All prices are ex-works domestic mill.
