SMU Data and Models

SMU Survey: Mills Not as Willing to Negotiate Steel Prices
Written by John Packard
April 3, 2014
Buyers and sellers of flat rolled steel are reporting the domestic steel mills as much less willing to negotiate prices this week as compared to two weeks ago. Our market analysis saw major contraction in each of the products with hot rolled moving from 85 percent down to 48 percent. Cold rolled halved their previous 54 percent, as this week we measured CR willingness at 27 percent. Galvanized dropped from 76 percent to 50 percent and Galvalume fell from 50 percent to 33 percent.
We are hearing that the domestic steel mills are holding at, or very close to, their announced price increase levels. We heard from one mill earlier today that they took a 7000 ton hot rolled order in the North at the full $660 per ton. Usually an order of that size is provided a discount by the producing mill.
Along with lead times (article above) negotiations provides a clearer picture as to what is happening in the market today and what the expectations or trend will be in the coming weeks.

John Packard
Read more from John PackardLatest in SMU Data and Models

SMU Survey: Steel mill lead times show diverging trends
Buyers responding to our latest market survey reported that sheet lead times continue to gradually decline from recent highs. Meanwhile, plate lead times increased to levels last seen one year ago.

SMU Survey: Mills unlikely to budge on price, buyers say
Four out of every five steel buyers who responded to our latest market survey say domestic mills are unwilling to negotiate on new order spot pricing. Mills have shown little flexibility on pricing for nearly two months.

SMU’s March at a glance
SMU’s Monthly Review provides a summary of our key steel market metrics for the previous month, with the latest data updated through March 31.

SMU Survey: Steel buyers maintain confident market outlook
SMU’s Buyers’ Sentiment Indices showed mixed movements this week but remain strong, reflecting continued confidence among steel buyers.

SMU Survey: Perspectives differ on impact of Trump tariffs
Are President Trump's tariff policies helping? Steel buyers offer their opinions on the impact of Trump's tariffs.