SMU Data and Models
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/media/k2/items/src/f1cb524e0fb213625b92335c255b7cb1.jpg)
Steel Mill Negotiations: Momentum Shifting from Sellers to Buyers
Written by Tim Triplett
November 11, 2021
Buyers continue to gain leverage in steel price negotiations, especially for hot rolled products.
Steel Market Update asks buyers every two weeks whether mills are willing to talk price on spot orders. Nearly three out of four (72%) of the hot rolled buyers responding to this week’s poll said mills are now willing to negotiate HR prices to land an order. The percentage has not been that high since August 2020 and is a clear indication that the mills are no longer in a position to dictate hot rolled prices.
The mills still have the stronger bargaining position in other products, as anywhere from 55% to 75% of buyers report mills still unwilling to negotiate prices on plate, cold rolled and coated products. But the green bars are rising in the chart below, pointing to the shifting momentum between buyers and sellers as lead times shorten and prices moderate.
What Respondents Had to Say
“Lead times have moved down a bit, but there’s no real negotiating.”
“Not much negotiation yet … but ‘yet’ is the key word. I could see the back-and-forth starting back up in Q1.”
“There’s some negotiating for 2021, quite a bit for 2022 for larger inquiries.”
“They are negotiating in a small range, though they are not willing to tank the market.”
“Cold rolled and coated are remaining stronger than HRC, at least for now. So the mills are remaining pretty firm there.”
“Tandem products domestically remain strong. We have not seen movement.”
By Tim Triplett, Tim@SteelMarketUpdate.com
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2023/04/tim-triplett.jpeg)
Tim Triplett
Read more from Tim TriplettLatest 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 […]