SMU Data and Models
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/media/k2/items/src/9ee7522ce5f538e0d8e201d0eca58ac4.jpg)
Steel Mill Negotiations: Buyers Still Have the Upper Hand
Written by Tim Triplett
February 3, 2022
With steel prices continuing to plunge, buyers clearly hold the upper hand in price negotiations with the mills – a position they have enjoyed for the past two months as seen in the upward slope of the green bars in the chart below.
Every two weeks, Steel Market Update asks readers: Are you finding the domestic mills willing to negotiate spot pricing on new orders placed this week? The vast majority of respondents in every product category report the mills willing to make a deal today in order to close a sale.
“Every week, the number is lower,” said one buyer: “Yes, they negotiate, but only to a certain degree. They are still trying to hold the line a bit,” added another.
Why do buyers have such a dominant negotiating position. Steel Market Update’s check of the market this week puts the average hot rolled price at $1,235 per ton ($61.75 per cwt), down by $100 per ton from last week and a decline of more than $700 per ton since last fall. With so many buyers staying on the sidelines to see how low prices go, mills almost without exception are open to discussing discounts. SMU will be keeping a close watch on when negotiations begin to tighten up as a sign that steel prices may be nearing a bottom.
Note: SMU surveys active steel buyers twice each month to gauge the willingness of their steel suppliers to negotiate pricing. The results reflect current steel demand and changing spot pricing trends. SMU provides our members with a number of ways to interact with current and historical data. To see an interactive history of our Steel Mill Negotiations data, visit our website here.
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 […]