SMU Data and Models
Steel Mill Negotiations: Still Talking...
Written by John Packard
July 10, 2014
Buyers and sellers of flat rolled steel responding to this week’s Steel Market Update survey reported steel mills as continuing to be receptive to negotiating flat rolled steel prices. However, we are seeing a moderation in the numbers as only 70 percent reported hot rolled coil (HRC) prices as negotiable compared to 92 percent just three weeks ago.
We also saw a moderation in the cold rolled numbers as 57 percent reported prices as negotiable vs. the 75 percent measured in mid-June 2014.
Galvanized dropped from 83 percent to 74 percent and Galvalume 83 percent to 67 percent.
We have seen steel prices moderating this week as our HRC average remained at $660 per ton, cold rolled at $785 per ton (no change) and both our galvanized and Galvalume averages increased by $5 per ton compared to one week ago.
John Packard
Read more from John PackardLatest in SMU Data and Models
SMU’s April at a glance
SMU’s Monthly Review provides a summary of our key steel market metrics for the previous month, with the latest data updated through April 30.
SMU Survey: Steel Buyers’ Sentiment Indices recover
SMU’s Buyers’ Sentiment Indices both improved this week, reversing the decline seen two weeks ago.
SMU Survey: Sheet and plate lead times flatten out
Sheet and plate lead times held steady this week, according to buyers responding to the latest SMU market survey. This week we saw little change from mid-April levels, with just one product (Galvalume) showing any significant movement.
SMU Survey: More mills willing to deal on sheet prices, less so on plate
Nearly two thirds of the steel buyers who responded to this week’s SMU survey say domestic mills are negotiable on spot prices. This increasing flexibility marks a significant shift from the firmer stance mills held in recent months.
SMU Survey: Sheet lead times ease further, plate hits one-year high
Steel buyers responding to this week’s SMU market survey report a continued softening in sheet lead times. Meanwhile, plate lead times have moderately extended and are at a one-year high.