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 Scrap Survey: Sentiment Indices rise
Both current and future scrap sentiment jumped this month, though survey participants reported responses before key trade news was announced.

SMU Survey: Sentiment splits, buyers have better view of future than the present
SMU’s Steel Buyers’ Sentiment Indices moved in opposite directions this week. After rebounding from a near five-year low in late June, Current Sentiment slipped again. At the same time, Future Sentiment climbed to a four-month high. Both indices continue to show optimism among buyers about their company’s chances for success, but suggest there is less confidence in that optimism than earlier in the year.

SMU scrap market survey results now available
SMU’s ferrous scrap 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 “ferrous scrap survey” results. Past scrap survey results are also available under that selection. If you need help accessing the survey results […]

SMU flat-rolled market survey results now available
SMU’s latest steel buyers 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.” Past survey results are also available under that selection. If you need help accessing the survey results, or if […]

SMU Survey: Sheet lead times stabilize, plate contracts
Mill lead times for sheet products were steady to slightly longer this week compared to our late June market check, while plate lead times contracted, according to steel buyers responding to this week’s market survey.