SMU Data and Models
Steel Survey Reports Mixed Results Regarding Mill Negotiations
Written by John Packard
July 9, 2015
Steel Market Update (SMU) continues to collect data from manufacturing and distributors suggesting that the domestic steel mills are willing to negotiate flat rolled steel pricing for new spot orders.
The weakest product is hot rolled steel where 76 percent of our respondents reported the mills as willing to negotiate steel prices. Prior to this latest survey and going back to the month of May we were seeing the percentages as being slightly lower (see graphic below).
Cold rolled is another product that continues to be weaker than we would have anticipated, especially after three price announcements (well, two and USS third). Sixty-eight percent of our respondents reported CR prices as being negotiable.
Galvanized and Galvalume are two products that saw some strengthening of the mill’s hand when it came to negotiating prices. Of those responding to our galvanized query 58 percent reported the mills as willing to negotiate. This is down from 68 percent back in mid-June.
Galvalume dropped to the lowest percentage of all the flat rolled products hitting 50 percent. Half of those responding to our AZ inquiry reported the mills as willing to negotiate. This is down 10 percent from what we reported both at the beginning and during the middle of the month of June.
To see an interactive history of our Steel Mill Negotiations data, visit our website here.
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 see modest recovery
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.