SMU spoke with a service center executive earlier today. During our conversion this Midwest based service center expressed his opinion regarding the ability to negotiate domestic steel prices in the current market environment when he told us, “I am beginning to think that with a firm bid you could get a better deal domestically than what you would get if you went foreign.”
In our HARDI galvanized steel conference call held earlier this week we heard from a number of wholesalers who reported the mills as, “…more willing to negotiate and we are seeing prices that we have not seen since 2008.”
Those responding to our mid-October flat rolled steel market analysis this week did not express opinions regarding domestic versus foreign pricing. What they did agree on is the domestic steel mills are aggressively negotiating price on all flat rolled products.
Those respondents reporting the mills as negotiating hot rolled prices rose from 92 percent to 97 percent (meaning 97 percent of the respondents reported mills as negotiating pricing).
Cold rolled also remained above 90 percent with 92 percent reporting the mills as willing to negotiate CR spot pricing.
Galvanized rose from 90 percent to 95 percent.
Galvalume rose from 86 percent to 89 percent.
Here is how negotiations have trended since the beginning of June 2015.
A side note: The data for both lead times and negotiations comes from only service center and manufacturer respondents. We do not include commentary from the steel mills, trading companies or toll processors in this particular group of questions.
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
SMU Steel Demand Index sags, hits four-month low
Steel Market Update’s Steel Demand Index has moved lower, having remained in contraction territory for the better part of the past two months, according to our latest survey data.
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: Current Buyers’ Sentiment flat, Future Sentiment falls
SMU’s Current Steel Buyers’ Sentiment Index was flat this week, while the Future Sentiment Index slipped, according to our most recent survey data.
SMU survey: Steel mill lead times largely stable
Mill lead times for flat-rolled steel were mostly stable over the past two weeks. With several mills slow to come out of outages and upgrades, cold rolled and coated lead times have been holding up better than hot rolled.
SMU survey: More sheet buyers find mills willing to talk price
The percentage of sheet buyers finding mills willing to negotiate spot pricing rose or remained relatively flat on the products SMU surveys, while plate slumped, according to our most recent survey data.