Market Data
January 4, 2018
Steel Mill Negotiations a Mixed Bag
Written by Tim Triplett
Despite price increases by the major mills in December, followed by additional increases this week, the majority of buyers of flat rolled steel report mixed results in their negotiations with mill representatives. About 53 percent of respondents to the latest Steel Market Update market trends questionnaire report that some mills are firm and some still flexible when it comes to talking price. Only 25 percent say mill order books are strong and there is no negotiating a better deal.
“Most of the mills are firm. We are seeing the mills less willing to entertain lower offers than a few months ago,” commented one manufacturer. “Negotiating for contracts is possible, but the window is closing, and mills could be getting firmer in the New Year,” said a trader. “Order books have certainly improved at the mills, but there are still deals if you can time an opportunity at a mill,” added a service center executive.
