Market Data
Steel Mill Negotiations: “They Can Charge Whatever They Want”
Written by Tim Triplett
January 7, 2021
With steel in such tight supply as 2021 gets off to a fast start, it’s clearly a seller’s market, with little to no price negotiation between buyers and the mills.
Based on Steel Market Update’s check of the market this week, average hot rolled steel prices have surpassed $1,000 per ton. SMU has received anecdotal reports of service centers and OEMs paying nearly $1,200 per ton to secure critically needed hot rolled. Similar premiums have been reported for most other flat rolled products as well.
Virtually all the steel buyers responding to SMU’s market trends questionnaire this week said the mills are unwilling to deal on almost any product, as indicated by the predominantly blue bars below. As one buyer said, “Right now they can charge whatever they want.”
With demand staying strong into the new year, steel is expected to remain in short supply for some time, at least until more mills bring on additional capacity.
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.
By Tim Triplett, tim@steelmarketupdate.com
Tim Triplett
Read more from Tim TriplettLatest in Market Data
HARDI: Galv demand improves in October, higher prices expected in new year
Participants on this month’s Heating Air-Conditioning & Refrigeration Distributors International (HARDI) Sheet Metal/Air Handling Council call expect galvanized steel base prices to firm up in the first quarter of 2026.
AISI: Raw steel mill output stabilizes
Domestic mill production inched higher last week, according to the latest figures released by the American Iron and Steel Institute (AISI). Prior to the start of this month, raw output had remained historically strong since June.
Steel market chatter this week
What's on steel buyers' minds this week? We asked about market prices, demand, inventories, tariffs, imports, and other evolving market trends. Read on for buyers' comments in their own words...
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.
SMU Survey: Current Sentiment sinks to lowest level since May 2020
SMU’s Steel Buyers’ Sentiment Indices both fell this week, with Current Steel Buyers’ Sentiment notching the lowest reading since May 2020.