SMU Data and Models

SMU Survey Results: Steel Mills Willing to Negotiate Pricing
Written by John Packard
December 4, 2014
Based strictly on the results from our Steel Market Update flat rolled market survey results, domestic steel mills are willing to negotiate prices on hot rolled, cold rolled, galvanized and Galvalume products. This is something that we see on a regular basis as lead times slip and the need for orders increases at the domestic mills.
Eighty-three percent of those surveyed reported the domestic steel mills as willing to negotiate hot rolled prices this week, this represents an increase of 13 percent from the middle of November. What a difference a year makes! In the first week of December last year, 35 percent reported the mills as being willing to negotiate HRC pricing.
The percentages reporting cold rolled pricing as negotiable actually declined from 71 percent in mid-November to 61 percent this week. In December 2013 only 19 percent reported the mills as willing to negotiate CR pricing.
Galvanized, on the other hand, increased to 89 percent from 79 percent. This is the highest level we have seen since the middle of May 2013. One year ago only 41 percent reported the domestic mills as willing to negotiate GI pricing.
Galvalume came in at 70 percent, up 3 percent from mid-November. One year ago only 22 percent reported the domestic mills as willing to negotiate pricing.
Below is an interactive graphic of our Negotiations History, but it can only be seen when you are logged into the website and reading the newsletter online. If you need any assistance logging in or navigating the website, contact us at info@SteelMarketUpdate.com or 800-432-3475.
{amchart id=”113″ SMU Negotiations by Product- Survey}

John Packard
Read more from John PackardLatest in SMU Data and Models

SMU Survey: Current Sentiment tumbles on tariffs, uncertainty, soft demand
SMU’s Steel Buyers’ Sentiment Indices moved in opposing directions this week. Our Current Steel Buyers’ Sentiment Index dropped to one of the lowest levels recorded in over five years, while Future Buyers’ Sentiment inched higher.

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 report little change in sheet and plate lead times
Steel buyers report steady lead times for sheet and plate products, a soft-sideways trend we've seen since May.

SMU Survey: Mills remain flexible on pricing, buyers say
The majority of steel buyers responding to our market survey this week continue to say that mills are negotiable on new spot order prices. Negotiation rates have remained high since May.

Service centers: Mill orders improve in July
SMU’s Mill Order Index (MOI) moved higher in July after rebounding the month prior. The shift comes after mill orders declined from March through May.