Distributors/Service Centers
July 17, 2026
HR buyers foresee bullish market through the second half of 2026
Written by Kristen DiLandro
Some hot-rolled coil market participants said they’re optimistic that the market will remain strong throughout the rest of the year.
In recent conversations with a variety of sources in the hot-rolled coil market, SMU found that many of them expect consistent demand until the holiday season at the close of 2026.
The prolonged sales cycle caused by less supply in the market has stretched project timelines through the fall. This combination of steady demand and constricted supply, they anticipate, will maintain pricing strength.
Market Commentary
One West Coast distributor maintains that the Pacific Coast region has consistently found demand where other regions may have struggled. Several infrastructure projects alongside the overall uptick in demand from data center development, and military investments, have kept the demand for steel consistent.
“HRC is still pretty strong from a West Coast perspective. We never get mill discounts out here,” he commented.
“I may be wrong, and time will tell, but I think the market will remain strong throughout the year until the holidays,” he added. “That’s when things slow down. Our business has not changed, it’s been very good for the last few months, and it looks like that won’t change any time soon.”
A Midwestern service center source thinks any demand slowdowns will be met with spot capacity limitations that will continue to support price levels.
“I see a very tight market with no wiggle room for pricing. Some lead times are a bit softer, but they’re still into September. We’re continuing to see prices increase weekly,” he said.
Prices
SMU’s weekly price assessment stands at $1,160 per short ton (st) on average. We recorded a range of $1,130-1,190/st. All prices are fob domestic mill.
