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.
An interactive graphic can be seen below when you are reading the newsletter online. If you have not logged into the website in the past and need your username and password, contact us at: info@SteelMarketUpdate.com or by calling 800-432-3475. If you need help navigating the website we would also be very happy to assist you.
{amchart id=”113″ SMU Negotiations by Product- Survey}

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

SMU Survey: Sheet lead times ease further, plate hits one-year high
Steel buyers responding to this week’s SMU market survey report a continued softening in sheet lead times. Meanwhile, plate lead times have moderately extended and are at a one-year high.

SMU Survey: Buyers report more price flexibility from mills
Nearly half of the steel buyers responding to this week’s SMU market survey say domestic mills are showing increased willingness to negotiate pricing on new spot orders. This marks a significant shift from the firmer stance mills held in prior weeks.

SMU Survey: Buyers’ Sentiment Indices fall
Current Sentiment Index dropped six points to +42 this week compared to two weeks earlier. It has fallen in every successive survey since reaching a 2025 high of +66 on Feb. 19.

March service center shipments and inventories report
Steel service center shipments and inventories report through March 2024.

Apparent steel supply contracts in February
The amount of finished steel that entered the US market in February receded from January’s peak, according to our analysis of Department of Commerce and American Iron and Steel Institute (AISI) data.