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Positive Steel Market Trends in North America Amid Rising Activity Levels

The North American steel market is witnessing a notable upswing in activity levels, driven by recent industry developments. Relevant articles such as FERC laments disconnect between hyperscalers, grid and Fetterman slams AI data center moratorium proposal as ‘China First’ indicate rampant demand pressures, particularly from the tech sector, highlighting discrepancies in utility engagement and technology plans, which may influence steel production needs.

Bar chart and satellite map of steel production activity in North America

The activity levels at Altos Hornos De Mexico S.A. (AHMSA), known for its integrated production processes using basic oxygen furnaces (BOF), show a significant rise to 48.0% in March 2026, correlating with the overall regional increasing demand, especially from the tech industry. However, recent news articles raise concerns about potential regulatory impacts and long-term implications on steel procurement related to trends in AI technology, as highlighted by Fetterman’s criticism of the moratorium.

The Deacero Saltillo-Ramos Arizpe steel plant has seen relatively stable activity levels, fluctuating around 20%, which may indicate limited growth potential compared to AHMSA’s more robust activity. Despite its essential contributions to infrastructure projects, the plant’s lower engagement could result in supply challenges if demand projections from tech-related infrastructures manifest following tech growth trends.

On the other hand, Ivaco Rolling Mills, primarily focused on producing wire rod and billet, has shown a significant uptick to 32% in February before recording a drop (data not captured in March), which suggests volatility in production input costs and that procurement strategies must be agile and responsive to market conditions.

As the steel industry navigates the increasing demand from the tech sector, particularly data center constructions discussed in the FERC article, steel buyers should consider:

  • Procurement Flexibility: Given the rapid fluctuations, especially in AHMSA and Ivaco, maintaining a flexible procurement strategy to manage potential supply increase or shortfall while anticipating regulation impacts from technology advancements will be crucial.
  • Diversifying Suppliers: Continuously assess supplier activity levels and performance to mitigate risks associated with specific plants’ operational constraints, particularly if they become affected by regulatory changes.

In conclusion, the North American steel market presents a positive outlook, but proactive measures are essential for procurement professionals to capitalize on opportunities and sidestep potential disruptions.