SMU Data and Models
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/Mixed.png)
SMU survey: Mills more willing to negotiate price on all products - except cold rolled
Written by Ethan Bernard
December 21, 2023
Almost all of the products SMU surveys notched an increase in the percentage of buyers saying mills were willing to negotiate spot pricing. The lone exception was cold rolled, according to our most recent survey data.
The negotiation rate for cold rolled tumbled 24 percentage points to 21% vs. 45% two weeks earlier. Meanwhile, steel plate’s mill negotiation rate jumped nine percentage points to 74% in the same comparison.
Every two weeks, SMU asks steel buyers whether domestic mills are willing to negotiate lower spot pricing on new orders. This week, 44% of participants surveyed by SMU reported mills were willing to negotiate prices on new orders, down from 50% from two weeks prior (Figure 1). The final reading of the year marks the lowest point since the end of October.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2023/12/SMU_Negotiations_2023_1221_Fig1-1024x633.png)
Figure 2 below shows negotiation rates by product. Hot rolled’s rate rose to 42% of buyers saying mills were willing to talk price, up from 40% at the previous market check. Galvanized also increased two percentage points to 42%. And Galvalume increased five percentage points to 38%. We have averaged Galvalume with the previous market check because of fewer market participants and to reduce volatility.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2023/12/SMU_Negotiations_2023_1221_Fig2-1024x633.png)
Here’s what some survey respondents had to say:
“Yes, we have secured tons (on hot rolled) well below published prices.”
“Extremely limited spot tons for Galvalume.”
“Sales reps are following up more quotes (on plate) lately. Therefore, business is not as robust as hoped.”
“We haven’t had any meaningful conversations on (hot rolled) pricing, but we have had several reps reach out wanting to engage about tons.”
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.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2024/02/SMU_EB_headshot.png.jpg-150x150.png)
Ethan Bernard
Read more from Ethan BernardLatest 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 […]