SMU Data and Models
SMU Survey Results: Steel Mills More Willing to Negotiate Pricing
Written by John Packard
October 9, 2014
Based on the responses received from our SMU flat rolled steel survey conducted this week, we have learned that the domestic steel mills have become more willing to negotiate flat rolled steel prices than they were in mid-September. We also learned the mills are more willing to discuss pricing than they have been going back all the way to June/July 2014.
Sixty-eight percent of our respondents reported steel mills as willing to negotiate hot rolled pricing. This is a little higher than the 56 percent reported in mid-September and is the highest percent going back to the first week of July 2014.
Fifty-seven percent of the respondents reported the mills as willing to negotiate cold rolled pricing. As with hot rolled, this is the highest percentage reported since the first week of July 2014.
Seventy-three percent of those responding reported the mills as willing to negotiate galvanized pricing. This is a slight increase from the 68 percent reported during mid-September. This is also the highest percentage seen since the first week of July 2014.
One hundred percent of the respondents reported the domestic mills as willing to discuss pricing on Galvalume products. This represents a significant change compared to the 57 percent reported in mid-September. This could be related to the fact that most metal building, roofing and siding buyers were at Metalcon in Denver last week. We will need to watch this product closely to see if there is any significant movement in pricing over the next few weeks. Back in mid-June 2014, we saw 83 percent of our respondents reporting mills as willing to discuss pricing.
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{amchart id=”113″ SMU Negotiations by Product- Survey}
John Packard
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