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 PackardRead more from John Packard
Latest in SMU Data and Models
US Hot Band Now Even Cheaper Than Imported HRC
US hot-rolled coil (HRC) prices fell further relative to imported product this week. Domestic hot band remains cheaper than offshore HRC as US tags continue to sink at a sharper rate than those overseas.
Service Center Shipments and Inventories Report for August
Flat Rolled = 54.1 Shipping Days of Supply Plate = 61.2 Shipping Days of Supply Flat Rolled US service center flat-rolled steel inventories eased back in August with stronger shipments. At the end of August, service centers carried 54.1 shipping days of supply, according to adjusted SMU data, down from 56.1 shipping days of supply […]
SMU Steel Demand Index Inches Up
Steel Market Update’s Steel Demand Index remains in contraction territory despite marginal improvement, according to our latest survey data.
HRC vs. Galv Price Spread Widened This Summer
The spread between hot-rolled coil (HRC) and galvanized sheet base prices widened throughout the summer as hot rolled prices declined faster than those of galvanized.
US Prime Scrap, HRC Spread Narrows Further
The spread between hot-rolled coil (HRC) and prime scrap prices continued to narrow this month, according to Steel Market Update’s most recent pricing data.