SMU Data and Models
Steel Buyers Say Few Mills Willing To Negotiate Lower Prices
March 2, 2023
Steel buyers are finding mills much less willing to negotiate lower prices this week, according to SMU data.
Respondents to our latest survey reported that most mills were unwilling to negotiate lower sheet prices. Some said plate mills were still willing to cut deals.
Every two weeks, SMU asks steel buyers whether domestic mills willing to negotiate lower spot pricing on new orders? This week, 29% of steel buyers (Figure 1) across both sheet and plate markets reported that mills were willing to negotiate lower prices on new orders, down from an average rate of 45% two weeks ago.
This is the second consecutive week when that number was below 50%. It is evidence that mills are digging in their heels on spot pricing following multiple rounds of price hikes in February.
Figure 2 below shows negotiation rates by product. Hot rolled fell 21 percentage points to 24%, cold rolled dropped 20 percentage points to 25%, galvanized sank 12 points to 36%, and Galvalume dropped precipitously – 33 percentage points to 17%. Plate was unchanged at 40%.
Note: SMU surveys active steel buyers every other week 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 Ethan Bernard, ethan@steelmarketupdate.com
Latest in SMU Data and Models
SMU’s April at a glance
SMU’s Monthly Review provides a summary of our key steel market metrics for the previous month, with the latest data updated through April 30.
SMU Survey: Steel Buyers’ Sentiment Indices recover
SMU’s Buyers’ Sentiment Indices both improved this week, reversing the decline seen two weeks ago.
SMU Survey: Sheet and plate lead times flatten out
Sheet and plate lead times held steady this week, according to buyers responding to the latest SMU market survey. This week we saw little change from mid-April levels, with just one product (Galvalume) showing any significant movement.
SMU Survey: More mills willing to deal on sheet prices, less so on plate
Nearly two thirds of the steel buyers who responded to this week’s SMU survey say domestic mills are negotiable on spot prices. This increasing flexibility marks a significant shift from the firmer stance mills held in recent months.
SMU Survey: Sheet lead times ease further, plate hits one-year high
Steel buyers responding to this week’s SMU market survey report a continued softening in sheet lead times. Meanwhile, plate lead times have moderately extended and are at a one-year high.