SMU Data and Models
Steel Mill Negotiations: Big Movement on All but Galvalume
Written by John Packard
June 5, 2014
As mentioned in the article on steel mill lead times included in this newsletter, we tend to see steel mills as more willing to negotiate steel prices as order books begin to get leaner and lead times begin to shrink. We are seeing some retrenchment of lead times and, at the same time, our recent market analysis is pointing toward much higher percentages of our respondents reporting the steel mills as willing to discuss flat rolled steel pricing.
Hot rolled appears to be the most fluid product with those reporting the mills as willing to negotiate hitting the 86 percent level. This is a level not seen since the end of the 1st Quarter 2014.
Cold rolled also saw an increase moving from 42 percent to 61 percent. As with hot rolled above, cold rolled is at a level not seen since late first quarter.
The number of our respondents reporting galvanized prices as negotiable rose from 56 percent in the middle of May to 69 percent this week.
The one item where we saw a small reduction was in Galvalume as only 60 percent of our respondents are now reporting mills as negotiable on pricing compared to 64 percent a couple of weeks ago.
John Packard
Read more from John PackardLatest in SMU Data and Models
SMU Scrap Survey: Current and Future Sentiment tick down
SMU’s Current Sentiment Index for scrap decreased this month, a move mirrored by our Future Sentiment Index, according to the latest data from our ferrous scrap survey.
SMU Survey: Buyers’ Sentiment slips again, future outlook improves
Each of our Sentiment Indices continues to reflect that steel buyers are positive about their present and future business prospects, though that confidence has eased considerably compared to the beginning of the year.
SMU scrap market survey results now available
SMU’s October ferrous scrap market survey results are now available on our website to all premium members.
SMU flat-rolled market survey results now available
SMU’s latest steel buyers market survey results are now available on our website to all premium members.
SMU Survey: Sheet and plate lead times stabilize
Sheet and plate lead times saw minor shifts this week, according to SMU’s latest market survey. Sheet times have inched up over the last month but remain within days of multi-year lows, as they have since May. Plate lead times have bobbed within a tight range for months, hovering roughly a week longer than this time last year.