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
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