SMU Data and Models

Steel Mill Negotiations: Still Wide Open
Written by Tim Triplett
June 20, 2019
Steel price negotiations have been wide open for the past two months and there is no sign of that changing in Steel Market Update’s latest data. More than nine out of 10 steel buyers responding to SMU’s market trends questionnaire this week reported that the mills are still willing to negotiate on flat rolled and plate steel prices.
The percentages have seen little change in the past two weeks. About 93 percent of respondents said the mills are open to price negotiations on hot rolled. Just 7 percent said the mills are currently holding the line on HR.
In the cold rolled segment, 95 percent now report the mills open to price negotiations, with just 5 percent reporting current cold rolled prices as firm.
In the galvanized sector, 92 percent said the mills are flexible on price, while just 8 percent reported that galvanized prices are now nonnegotiable. The same is true for Galvalume, as 89 percent said the mills are now willing to talk price, versus 11 percent who disagreed.
About 75 percent of plate buyers report some flexibility in mill plate prices, while the other 25 percent say plate is not in play.
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
Read more from Tim TriplettLatest in SMU Data and Models

Apparent steel supply remains elevated in July
Apparent supply totaled 8.88 million short tons (st) in July, down 38,000 st from June and 6% higher than the same month last year

HRC vs. prime scrap spread narrows slightly
The price spread between prime scrap and hot-rolled coil (HRC) narrowed by a hair this month, according to SMU’s most recent pricing data.

SMU Scrap Survey: Current Sentiment rises as Future Sentiment falls
SMU’s current Scrap sentiment index increased this month while future sentiment declined, according to our latest ferrous scrap survey data.

SMU scrap market survey results now available
SMU’s September ferrous scrap market survey results are now available on our website to all premium members.

SMU Survey: Sentiment inches up from low levels
SMU’s Steel Buyers’ Sentiment Indices ticked higher this week, according to the latest data from our flat-rolled steel survey.