Barclays says steel markets remain tight at Atlanta summit

Investing.com -- Barclays analysts reported that steel markets continue to face supply constraints following the SMU Steel Summit 2026 in Atlanta, Georgia, which took place this week. The conference drew more than 1,550 steel industry participants including buyers, suppliers, consultants and investors.

The bank's meetings at the event confirmed that the lack of domestic steel availability remains the primary concern for steel buyers, rather than demand or pricing issues. The firm maintains its positive near-term outlook on the steel sector and continues to recommend buying Nucor (NYSE: NUE) and Steel Dynamics (NASDAQ: STLD) following recent price declines.

Demand appears strong across most industrial end markets, with construction being the main exception. Within construction, strength has been concentrated in data centers, energy grid applications and border wall projects. The firm noted that demand has not weakened despite higher prices, as the gradual pace of price increases has helped prevent buyer resistance to the more than 50% price rise over the past year.

The escalation of US-Canada trade tensions has created additional uncertainty. On August 21, Canada withdrew from trade negotiations with the US and announced 50% retaliatory tariffs on approximately $20 billion worth of goods including steel, dairy, appliances, agricultural equipment, pulp and paper and electronics, set to begin on September 8.

Conference panelists viewed the trade war escalation as negative for both countries, with potential impacts on steel demand depending on how the tariffs affect certain goods.

A conference poll revealed that 79% of attendees expect steel prices to be lower a year from now than the current spot price of $1,200 per ton. The survey showed 36% expect prices between $1,000-1,099 per ton, 32% expect prices between $1,100-1,199 per ton, and 11% expect prices at $999 per ton or lower. Only 21% of attendees anticipate higher prices. Barclays' current hot-rolled coil forecast stands at $1,150 per ton.

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