SMU Data and Models
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/media/k2/items/src/7a91b4fed379ab09ef6e3a266672442e.jpg)
Steel Mill Negotiations Essentially Non-Existent
Written by John Packard
June 10, 2021
Steel buyers reported to Steel Market Update this week that the trend for steel mills to limit or totally remove any negotiations on spot steel prices continues.
Steel pricing power is totally in the hands of the steel mills as supply continues to be less than the demand for mill products.
Steel Market Update went out to steel buyers representing manufacturing companies and steel service centers, and they reported (again) almost unanimously that prices were being held firm with no wiggle room.
When we look at negotiations by product, we found 94 percent of our hot rolled respondents reporting no ability to negotiate with their steel mill suppliers. Cold rolled was 95 percent reporting no ability to negotiate. Galvanized, Galvalume and plate steel buyers were unanimous (100 percent) that there was no ability to negotiate spot pricing with their steel mill suppliers.
One major reason for the hard line taken by steel mills: extended lead times. In other words, mills have strong order books and do not need to entice spot buyers with lower prices to place new orders.
The SMU Steel Mill Negotiation data is derived from our flat rolled and plate steel market trends analysis survey which we conduct every other week. If you would like to become a confidential data provider please contact us at info@SteelMarketUpate.com. To see an interactive history of our spot price negotiations data, visit our website here.
By John Packard, John@SteelMarketUpdate.com
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2023/04/john-packard.png)
John Packard
Read more from John PackardLatest in SMU Data and Models
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/Premium1.png)
Steelmaking raw material prices ease in July
The majority of steelmaking raw material prices declined in June, following the same trend seen in May, according to SMU’s latest analysis.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2024/01/cropped-SMU_Mobile_final.png)
SMU price ranges: HR declines moderate. Are we near a bottom?
SMU’s sheet price ranges slid again this week. But the declines were more pronounced on tandem products whereas prices for hot-rolled coil held roughly steady.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/Premium1.png)
Some SMU Key Market Indicators improve, others remain near historic lows
SMU’s Key Market Indicators include data on the economy, raw materials, manufacturing, construction, and steel sheet and long products. They offer a snapshot of current sentiment and the near-term expected trajectory of the economy. All told, nine key indicators point lower, 16 are neutral, and 13 point higher. One thing worth noting: The nine indicators pointing lower are all lagging indicators. Many of those pointing upward are leading indicators.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2024/01/cropped-SMU_Mobile_final.png)
SMU survey: Steel Buyers’ Sentiment Indices rebound
SMU’s Steel Buyers’ Sentiment Indices both saw improvement this week. Current sentiment ticked higher but remains near the four-year low seen earlier this month. Future Sentiment continues to indicate that buyers are optimistic for future business conditions.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/Premium1.png)
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, or if your […]