SMU Data and Models

Steel Mill Negotiations: Price's Up, Bargaining's Down
Written by Tim Triplett
December 22, 2020
Based on Steel Market Update’s check of the market this week, hot rolled steel prices are nearing $1,000 per ton, within sight of a record high. With service centers and OEMs willing to pay such high prices in order to secure inventory in a tight market, it’s no surprise the buyers report little willingness among the mills to negotiate any discounts.
Data from Steel Market Update’s market trends questionnaire this week shows only minor changes in the past month. Virtually all the steel buyers responding this week said the mills are unwilling to deal on hot rolled and 95 percent said the mills would not negotiate on cold rolled.
Negotiations for coated steel orders are just as tight, with 96 percent reporting the mills refusing to discount galvanized orders, and all respondents reporting no price breaks on Galvalume.
There was little change in negotiations for steel plate with just 14 percent reporting that the mills are flexible on price. Demand for plate has improved significantly in the past month, with plate prices on the increase much like flat rolled.
Note: These negotiations are based on the average from manufacturers and steel service centers who participated in this week’s SMU market trends analysis. To see an interactive history of our Negotiations data, visit our website here.

Tim Triplett
Read more from Tim TriplettLatest in SMU Data and Models

SMU market survey results now available
The latest SMU 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 “latest survey results.” Historical survey results are also available under that selection. If you need help accessing the survey results, […]

SMU survey: Buyers Sentiment Indices slip
SMU’s Current and Future Steel Buyers Sentiment Indices both fell during the week of Dec. 6, based on our most recent survey data.

SMU survey: Mills more willing to talk price on sheet, less on plate
The percentage of steel buyers saying mills were willing to budge on spot pricing has risen for all sheet products SMU surveys, according to our most recent survey data.

SMU survey: Direction of mill lead times mixed on holiday season lull
Movements in lead times were mixed in SMU’s check of the market this week – a reflection of the seasonal dip in ordering that is typically seen during the winter holiday season.

SMU price ranges: Sheet surge continues on limited spot availability
Sheet prices shot higher again this week on the heels of another round of mill price increases as well as on reports of production and supply chain issues at certain domestic producers.