SMU Survey: Mill negotiability at lowest rate in five years

Most steel buyers responding to our latest market survey reported that mills continue to hold a firm grip on prices. Negotiation rates remain low on all sheet and plate products. In late August, the share of buyers reporting that mills were negotiable fell to the lowest rate seen in almost five years, and that rate was unchanged through this week.

Every two weeks, SMU surveys service center and manufacturer buyers asking if mills are negotiable on new spot sheet and plate orders. In this week’s survey, 9% of respondents said mills were willing to talk price to secure an order (Figure 1). This is now the lowest rate recorded since September 2021.

Limited negotiability across all products

Negotiation rates for three of the four sheet products we track marginally recovered from the multi-year lows seen two weeks prior, while cold rolled and plate rates declined (Figure 2). Current rates are:

Hot rolled: 6% of buyers said mills are negotiable on price, up two percentage points from our prior survey. In late August this rate reached a five-year low of 4%.
Cold rolled: down two points to 13%, marginally above the near-five-year low of 7% seen in July.
Galvanized: up two points to 8%, recovering from a five-year low of 6%.
Galvalume: up three points to 10%, marginally above the near-five-year low of 7% seen two weeks prior.
Plate: down 11 points to 8%, one of the lowest rates recorded since April 2023.

Buyer comments:

“Not enough [hot rolled] available to negotiate.”

“No longer seems that they are willing to negotiate [on galvanized].”

“[Negotiable on hot rolled] on large orders.”

“[Negotiable on Galvalume] on larger orders.”

Note: SMU surveys active steel buyers every other week to gauge their steel suppliers’ willingness to negotiate new order prices. The results reflect current steel demand and changing spot pricing trends. Premium members can view an interactive history of our steel mill negotiations data on our website.

Brett Linton

Brett Linton is a digital operations 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.