SMU Data and Models

SMU survey: Most sheet, plate buyers find mills more flexible on price

Written by Ethan Bernard

June 6, 2024

Steel buyers found mills more willing to negotiate spot pricing this week on all products SMU tracks with the exception of Galvalume, according to our most recent survey data.

For buyers of HRC, 88% of respondents said mills were more willing to talk price, up 10 percentage points from two weeks earlier. At the same time, Galvalume’s rate fell 16 percentage points to 84% in the same comparison.

Every other week, SMU polls steel buyers asking if domestic mills are willing to negotiate lower spot pricing on new orders.

This week, 83% of participants surveyed by SMU reported mills were more flexible on prices for new spot orders, up three percentage points from our previous market check. With the exception of mid-March when it registered 84%, this is the highest reading so far in 2024 (Figure 1).

Figure 2 below shows negotiation rates by product. The rate for cold-rolled coil stands at 76% this week, up five percentage points, galvanized was up one percentage point to 86%, and plate was up three percentage points to 81%.

Here’s what some survey respondents had to say:

“With appreciable tons (on plate).”

“Most mills have very short lead times (on galvanized). There are a few mills with extended lead-times.”

“Depending on the mill and the size of the buy (for HRC).”

“Not with open hands, but willing (on plate).”

“Depending on tonnage (for HRC), but there is a little room to get a better deal.”

Note: SMU surveys active steel buyers every two weeks to gauge their steel suppliers’ willingness 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

Ethan Bernard is a reporter and editor for Steel Market Update. He previously worked for American Metal Market as a copy editor in the New York office for two years starting in 2008. Later, he copy edited AMM’s monthly magazine on a freelance basis from 2015 until 2017. With experience in financial copywriting and textbook publishing, he holds a BA in Comparative Literature from UC Berkeley, and an MFA. in Creative Writing from New York University. He can be reached at ethan@steelmarketupdate.com or 724-759-7871.

Read more from Ethan Bernard

Latest in SMU Data and Models

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.