SMU Data and Models

SMU Survey: Most buyers report mills still willing to talk price

Written by Brett Linton

November 21, 2024

Most steel buyers SMU polled this week reported that mills remain willing to negotiate new order pricing. Negotiation rates have been high for the majority of 2024, recently peaking in late October.

Every two weeks, SMU surveys hundreds of steel market executives. asking whether domestic mills are open to negotiating prices on new spot orders. This week, 85% of our buyers reported that mills were willing to talk price to secure an order (Figure 1). This rate has eased each of the last two surveys, but this week’s is still one of the higher levels recorded in the past year.

Negotiation rates by product

As seen in Figure 2, negotiation rates remain high among both sheet and plate products. Negotiation rates were highest for hot-rolled, coated, and plate products; all were close to the 90% mark. The most significant change observed from our previous survey was on cold rolled, with rates declining from earlier this month. According to surveyed steel buyers, negotiation rates by product this week stand at:

  • Hot rolled: 89%, up 1 percentage point from Nov. 6 and the highest rate recorded since mid-July.
  • Cold rolled: 71%, down 10 percentage points and the lowest rate recorded since mid-September.
  • Galvanized: 89%, down 6 percentage points.
  • Galvalume: 93%, up 5 percentage points.
  • Plate: 88%, down 4 percentage points.

Here’s what some survey respondents had to say:

“Negotiable on galvanized, but not like they were a couple months ago.”

“Minis = yes/no, BOFs = no.”

“Some mills have headed to the sidelines, but time will tell how long that lasts.”

“Domestic plate mills are hungry. Excited post-election, obviously, but still showing weak demand in the immediate term.”

“Depending on the size, grade, and tons, you might be able to request a deal on plate. Maybe get it, maybe not.”

“Not every mill.”

Brett Linton

Brett Linton is a senior analyst for Steel Market Update, where he began his career. Linton has been in the steel industry since 2010. He has held roles as a category manager and strategic insights director at Reibus before returning to SMU in 2024. He is a graduate of The University of North Georgia with a degree in Finance and Accounting. Brett can be reached at brett@steelmarketupdate.com or 724-314-0179.

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