Steel Mill Negotiations: Still in Steelmakers' Favor

All but a tiny 3% of respondents to Steel Market Update’s questionnaire this week reported that the flat rolled mills remain unwilling to negotiate steel prices. Plate negotiations are only slightly more open, with 17% of buyers saying there is some wiggle room in price talks with the plate producers.

As long as steel demand continues to exceed supply by such a wide margin, steelmakers can easily sell all they produce and have no need to discount prices. Steel Market Update’s check of the market this week puts the current benchmark price for hot rolled steel at a new record of $1,240 per ton ($62/cwt), topping the former high recorded by SMU of $1,070 per ton ($53.50/cwt) in 2008.