Market Data
October 27, 2022
Steel Mill Negotiations: Still a Buyer's Market
Written by Brett Linton
As steel prices ease week after week, the power position in price negotiations between steel mills and steel purchasers continues to rest with buyers, as it has since June. According to our latest check on the market, a high percentage of buyers continue to report that mills are willing to talk price to secure an order. A high willingness to negotiate has been shown in each of our market surveys since May.
Every other week, Steel Market Update asks hundreds of steel buyers the question: Do you find domestic mills are willing to negotiate spot pricing on new orders? On average this week, 82% of steel buyers reported that mills were willing to negotiate lower prices on new orders, down from a rate of 89% two weeks ago. As shown in Figure 1, negotiation rates have remained relatively high since June.
