Plate sources anticipate price hikes on spot this fall

The sources were concerned higher prices might cause end users to seek out other solutions if plate supply becomes too scarce. But a more optimistic swath said imported steel would be the more likely alternative than material demand degradation.

Market commentary

A midwestern service center source remains content with the overall market conditions. However, he fears price hikes and supply will result in adverse market conditions down the line.

“Demand is still good, along with supply constraints. Most likely, some type of price increase will come in October. At some point, public jobs will cease if prices climb too high. Data centers are the main demand driver, but many sectors remain busy,” he said.

The same source also said, “Imports should start to pop up more. But today, imports don’t seem like they will hamper domestic demand or pricing. Every day is a [new] show!”

An East Coast-based sheet and plate distributor echoed similar sentiments as the Midwest source.

He said, “Demand is still good. Supply is really tight. Hard to tell exactly what the ranges are for many reasons. Not the least of which is that if you are quoted for spot and don’t buy it, it’s gone.”

“Some mills have no spot tons. If you get them but don’t act, you lose them. Most mills seem to be resisting price increases in areas where they have influence, so imports stay out,” he commented.

He expects prices to rise in the fall if imports don’t offset the existing supply constraints.

“It’s a good time to make money, but you won’t make much. Tariffs seemed to have done what they were meant to do,” he added.

Prices

SMU’s weekly price assessment rose to $1,380 per short ton (st) on average as of Tuesday, while overall prices range from $1,330/st to $1,430/st. All prices are FOB domestic mill.