SMU Data and Models
Steel Mills Still Willing to Negotiate Flat Rolled Steel Prices
Written by John Packard
April 9, 2015
According to our survey respondents not much has changed when it comes to how willing steel mills are to negotiate hot rolled, cold rolled, galvanized and Galvalume steel pricing.
Lead times continue to remain short and order books weak. This has created a situation whereby steel mills have to be competitively priced in order to book new spot orders. Especially when considering the $140 per ton drop in pricing (HRC) since the end of December 2014 to this week.
A coating mill provided some comments to Steel Market Update separate from our survey but they are germane to the subject of mill negotiations. We were told, ““Demand is a bit soft but more inquiries are in process now than in recent months. Everyone is digging for the best price. My take is that there is biz to be had for Q3, but that the range between lowest and highest base is narrowing. Not so much erosion on the low end of the base, but some on high end of the range as customers seem to be ready to actually place orders soon and they won’t unless they get a deal.”
As you can see by the graphic below all of the flat rolled products are “in play” and negotiable.
To view the interactive history of the graphic above, visit the Steel Mill Negotiations page on the Steel Market Update website here.
John Packard
Read more from John PackardLatest in SMU Data and Models
SMU market survey results now available
The latest SMU 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.” Historical survey results are also available under that selection. If you need help accessing the survey results, […]
SMU survey: Buyers Sentiment Indices slip
SMU’s Current and Future Steel Buyers Sentiment Indices both fell during the week of Dec. 6, based on our most recent survey data.
SMU survey: Mills more willing to talk price on sheet, less on plate
The percentage of steel buyers saying mills were willing to budge on spot pricing has risen for all sheet products SMU surveys, according to our most recent survey data.
SMU survey: Direction of mill lead times mixed on holiday season lull
Movements in lead times were mixed in SMU’s check of the market this week – a reflection of the seasonal dip in ordering that is typically seen during the winter holiday season.
SMU price ranges: Sheet surge continues on limited spot availability
Sheet prices shot higher again this week on the heels of another round of mill price increases as well as on reports of production and supply chain issues at certain domestic producers.