SMU Data and Models
SMU survey: Buyers say mills slightly less willing to talk price
Written by Ethan Bernard
January 4, 2024
The percentage of steel buyers saying mills were willing to negotiate spot pricing on the products SMU surveys was mixed this week. Overall, though, the mill negotiation rate dipped slightly, according to our most recent survey data.
The biggest slip was in plate, with the negotiation rate dropping 17 percentage points from two weeks earlier to 57%. This was followed closely by galvanized sheet, whose rate tumbled 16 percentage points to 28% 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, 40% of participants surveyed by SMU reported mills were willing to negotiate prices on new orders, down from 44% at the previous market check (Figure 1). This is the lowest reading since Thanksgiving. At the start of 2023, the rate stood at 50%.
Figure 2 below shows negotiation rates by product. Hot rolled’s negotiation rate fell nine percentage points to 33% from two weeks earlier. Meanwhile, cold rolled’s rate rose two percentage points to 23% and Galvalume’s increased six percentage points to 44%. We have averaged Galvalume with the previous market check because of fewer market participants and to reduce volatility.
Here’s what some survey respondents had to say:
“Not seeing much negotiation just yet (for hot rolled).”
“Pricing is more of a range of $1,300-1,350 (on cold rolled).”
“Depending on the size of the buy, bigger orders can get some competition (on galvanized).”
“(Willing to negotiate on) large hot rolled orders.”
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.
Ethan Bernard
Read more from Ethan BernardLatest in SMU Data and Models
SMU Steel Demand Index falls to an eight-month low
Steel Market Update’s Steel Demand Index fell eight points, and back into contraction territory, an indication demand might be slipping as prices have trended lower, according to our latest survey data.
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 […]
SMU survey: Steel Buyers’ Sentiment Indices fall
SMU’s Steel Buyers’ Sentiment Indices both declined this week, with Current Sentiment tumbling over 10 points, according to our most recent survey data.
SMU survey: HR, CR, and plate buyers find mills more flexible on price
Hot rolled, cold rolled, and plate buyers said mills are more willing to talk price on spot orders this week, while the overall negotiation rate for products SMU surveys remained level, according to our most recent survey data.
SMU survey: Lead times slip for most sheet and plate products
Most steel products tracked by SMU saw lead times contract this week from two weeks earlier, according to SMU’s most recent survey data.