Market Data
May 12, 2022
Mill Negotiations: It's a Buyer's Market Now
Written by Brett Linton
The firm grip mills have held on price negotiations in March and April has loosened, according to buyers polled in our latest steel market survey. A large portion of steel buyers now report that mills are willing to talk price to secure an order.
Every two weeks, SMU asks survey respondents: Are you finding domestic mills willing to negotiate spot pricing on new orders placed this week? On average this week, 70% of steel buyers report that mills were willing to negotiate lower prices on new orders, up from 35% two weeks prior. Mills’ willingness to negotiate has grown in each of our market checks over the past eight weeks. The shift to a buyer’s market this week was not a shock to some respondents: Several last month said that they expected mills to begin to budge more on price to secure new orders in May.
