SMU Data and Models
Steel Mill Negotiations: All Products in Play
Written by Tim Triplett
April 4, 2019
The majority of respondents to Steel Market Update’s questionnaire this week reported mills willing to talk price in every product category, even plate, which may say something about the current state of steel demand.
About 76 percent of respondents said the mills are open to price negotiations on hot rolled, up 20 points from the 56 percent a month ago. Just 24 percent said the mills are currently holding the line on HR.
In the cold rolled segment, the talks have loosened a bit in the past month as 70 percent now report the mills open to price negotiations, up from 64 percent in March. Just 30 percent reported current cold rolled prices as firm.
In the galvanized sector, price talks are a 50-50 proposition. Half the respondents said the mills are flexible on price, down from 58 percent in the last poll, while half reported that galvanized prices are now nonnegotiable. Two out of three respondents said the mills are now willing to talk price on Galvalume.
Negotiations in the plate market have loosened noticeably, with the majority of buyers, 58 percent, now reporting plate prices in play.
Commented one manufacturer on flat rolled, “It’s still a narrow range between quoted and settled prices.” Added a service center exec, “They negotiate if the tonnage is enough.”
Note: SMU surveys active steel buyers twice each month to gauge the willingness of their steel suppliers to negotiate pricing. The results reflect current steel demand and changing spot pricing trends. SMU provides our members with a number of ways to interact with current and historical data. To see an interactive history of our Steel Mill Negotiations data, visit our website here.
Tim Triplett
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