SMU Data and Models
Steel Mills Becoming Less Likely to Negotiate Steel Prices
Written by John Packard
July 24, 2014
One of the most popular items produced out of our twice monthly flat rolled steel surveys is our Mill Negotiations data. We ask active buyers and sellers of steel how willing are domestic steel mills to negotiate pricing by product at this point in time. What our most recent survey results are telling us is the domestic mills are becoming more firm in the negotiation process than they were in June and earlier this month.
Of the hot rolled buyers, only 50 percent reported the domestic steel mills as willing to negotiate. This is down from 70 percent at the beginning of July and 92 percent recorded during the middle of the month of June.
Cold rolled buyers were even more adamant in their opinion that the domestic mills are not willing to negotiate pricing at this time. Only 29 percent of those responding to our cold rolled question reported the mills as willing to negotiate pricing on CRC product.
Galvanized also saw a reduction in the percentage of respondents reporting the mills as willing to negotiate GI pricing. Of the total respondents only 56 percent reported the domestic mills as being willing to negotiate GI pricing. This is down from 74 percent at the beginning of July and 83 percent reported in mid-June.
Galvalume was another product where spot buyers did not see as many discounts being offered (44 percent) as there were earlier this month (67 percent) or during the middle of June (83 percent).
John Packard
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