SMU Data and Models
Steel Buyers Report Steel Mills as Less Willing to Negotiate Pricing
Written by John Packard
March 6, 2016
Buyers and sellers of flat rolled steel reported to Steel Market Update this past week that the domestic steel mills are less willing to negotiate steel prices. We believe this is due to strengthening order books, extending lead times, positive Sentiment and improving demand.
The only product not following the rest of the market is hot rolled steel which 74 percent of our respondents reported as the one product being considered negotiable when dealing with the steel mills. When looking back to the first week of January we had 43 percent of our respondents reporting HRC pricing as negotiable.
Cold rolled saw 22 percent of our respondents reporting the mills as willing to negotiate pricing. At the beginning of January, 57 percent reported the mills as willing to negotiate CRC pricing.
Galvanized dropped from 58% during the first week of January to 39 percent this past week.
Galvalume also dropped compared to the beginning of the New Year when we had 44 percent of our respondents reporting prices as negotiable. This past week that percentage dropped to 25 percent.
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 Packard
Read more from John PackardLatest in SMU Data and Models
Apparent steel supply remained high in May
The volume of finished steel entering the US market remained elevated in May, in line with April figures, according to SMU’s analysis of Department of Commerce and American Iron and Steel Institute (AISI) data
June service center shipments and inventories report
Flat rolled = 55.8 shipping days of supply Plate = 59.4 shipping days of supply Flat rolled US service centers’ flat-rolled steel supply edged down in June with a modest boost to shipments month on month (m/m). At the end of June, US service centers carried 55.8 shipping days of flat roll supply, down from […]
SMU Scrap Survey: Sentiment Indices rise
Both current and future scrap sentiment jumped this month, though survey participants reported responses before key trade news was announced.
SMU Survey: Sentiment splits, buyers have better view of future than the present
SMU’s Steel Buyers’ Sentiment Indices moved in opposite directions this week. After rebounding from a near five-year low in late June, Current Sentiment slipped again. At the same time, Future Sentiment climbed to a four-month high. Both indices continue to show optimism among buyers about their company’s chances for success, but suggest there is less confidence in that optimism than earlier in the year.
SMU scrap market survey results now available
SMU’s ferrous scrap 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 “ferrous scrap survey” results. Past scrap survey results are also available under that selection. If you need help accessing the survey results […]