SMU Data and Models
SMU Survey Results: Steel Mills More Willing to Negotiate Pricing
Written by John Packard
October 9, 2014
Based on the responses received from our SMU flat rolled steel survey conducted this week, we have learned that the domestic steel mills have become more willing to negotiate flat rolled steel prices than they were in mid-September. We also learned the mills are more willing to discuss pricing than they have been going back all the way to June/July 2014.
Sixty-eight percent of our respondents reported steel mills as willing to negotiate hot rolled pricing. This is a little higher than the 56 percent reported in mid-September and is the highest percent going back to the first week of July 2014.
Fifty-seven percent of the respondents reported the mills as willing to negotiate cold rolled pricing. As with hot rolled, this is the highest percentage reported since the first week of July 2014.
Seventy-three percent of those responding reported the mills as willing to negotiate galvanized pricing. This is a slight increase from the 68 percent reported during mid-September. This is also the highest percentage seen since the first week of July 2014.
One hundred percent of the respondents reported the domestic mills as willing to discuss pricing on Galvalume products. This represents a significant change compared to the 57 percent reported in mid-September. This could be related to the fact that most metal building, roofing and siding buyers were at Metalcon in Denver last week. We will need to watch this product closely to see if there is any significant movement in pricing over the next few weeks. Back in mid-June 2014, we saw 83 percent of our respondents reporting mills as willing to discuss pricing.
An interactive graphic can be seen below when you are reading the newsletter online. If you have not logged into the website in the past and need your username and password, contact us at: info@SteelMarketUpdate.com or by calling 800-432-3475. If you need help navigating the website we would also be very happy to assist you.
{amchart id=”113″ SMU Negotiations by Product- Survey}
John Packard
Read more from John PackardLatest in SMU Data and Models
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. After logging in at steelmarketupdate.com, visit the pricing and analysis tab and look under the “survey results” section for “latest survey results.” Past survey results are also available under that selection. If you need help accessing the survey results, or if […]
SMU Survey: Buyers’ Sentiment rises but caution remains
After reaching multi-month lows in mid-May, SMU’s Buyers’ Sentiment Indices modestly recovered in our latest survey.
SMU Survey: Sheet lead times fall to multi-year low
Mill lead times shrunk this week for all of the sheet products tracked by SMU and held steady on plate, according to buyers responding to our latest market survey.
SMU Survey: Mill willingness to negotiate keeps on climbing
Most steel buyers responding to our latest market survey report that domestic mills are willing to talk price to secure new orders. Mill negotiability has continued to rise across all sheet and plate products we track, now at some of the highest levels recorded since late 2024.
Steelmaking raw material costs mixed through May
According to our latest analysis, prices for four of the seven steelmaking raw materials we track increased from April to May. However, select materials saw a collective 1% decline month over month and are down 4% compared to three months ago.