Market Data
July 7, 2022
Steel Mill Negotiations: Buyers Hold the Bargaining Power
Written by Brett Linton
Nearly nine out of ten steel executives polled this week reported that mills are willing to talk price to secure an order, according to our latest steel market survey. A high willingness to negotiate has been evident in our market checks since early May and now stands at the highest level since early February 2022.
Every other week, SMU asks survey respondents: Are you finding domestic mills are willing to negotiate spot pricing on new orders? On average this week, 88% of steel buyers report that mills were willing to negotiate lower prices on new orders, up from a rate of 84% when we polled the market two weeks prior and up from 74% one month ago. Recall we saw negotiation rates as low as 16% in March.
