SMU Data and Models
Mill Price Negotiations Show Continued Resolved by Steel Mills
Written by John Packard
May 8, 2014
The domestic steel mills continue to be united in their approach to negotiating flat rolled steel pricing. Based on data collected this week from our flat rolled steel market survey, we found that only 30 percent of the respondents were reporting the domestic mills as willing to negotiate hot rolled steel pricing. This is up from the cycle low of 21 percent reported during the middle of April. The cold rolled response rate pulled back from 42 percent in mid-April to 29 percent this week. Galvanized was the most negotiable items according to our respondents with 42 percent reporting the mills as willing to discuss GI prices. Galvalume came in at 38 percent.
With lead times potentially pulling back on hot rolled and cold rolled we will need to watch negotiations very carefully to see if the mills break ranks and begin to get more aggressive in their pricing, which would be reflected in our Negotiations data in future reports.
John Packard
Read more from John PackardLatest in SMU Data and Models
SMU Survey: Steel Buyers’ Sentiment Indices rebound
Following months of fluctuations, SMU’s Steel Buyers’ Sentiment Indices rebounded this week, now at multi-month highs. Both of our Indices remain in positive territory and indicate that steel buyers are optimistic about the success of their businesses.
SMU Survey: Mill lead times remain stable and short
Steel buyers participating in our market survey this week reported stable mill lead times for both sheet and plate steel products.
SMU Survey: Most buyers report mills still willing to talk price
Most steel buyers SMU polled this week reported that mills remain willing to negotiate new order pricing.
October service center shipments and inventories report
Flat rolled = 63.4 shipping days of supply Plate = 52.4 shipping days of supply Flat rolled shipments and inventories Flat-rolled steel supply at US service centers remains seasonally high. October inventories increased after edging lower in September – a dynamic driven largely by disappointing demand. October’s report reflects lower demand and stable lead times […]
Apparent steel supply slips to 7-month low in September
The total amount of finished steel to enter the US market in September fell to its lowest level in seven months, according to our analysis of recent Department of Commerce and the American Iron and Steel Institute (AISI) data