SMU Data and Models
Steel Mill Negotiations: Make Us an Offer…
Written by John Packard
January 22, 2015
According to the respondents to this week’s flat rolled steel market survey, the domestic steel mills are willing to negotiate prices on new orders for all flat rolled steel products.
As you can see by the graphic below, ever since the beginning of the 4th Quarter 2014 the domestic steel mills have been willing to discuss base price levels with their customers on hot rolled, cold rolled, galvanized and Galvalume steels. One of the main reasons for the mill position is the short lead times they have on all products (see lead time article in this issue of SMU). The more limited the mill order books the more anxious they are to fill them.
Our survey results are showing the response percentage indicating the mills as willing to negotiate pricing has been increasing since the beginning of December and are almost at 100 percent levels on all products in both the early January and this week’s survey results.
John Packard
Read more from John PackardLatest in SMU Data and Models
SMU Survey: Current Buyers’ Sentiment Index jumps, Future Sentiment slips
SMU’s Current Buyers’ Sentiment Index rocketed up this week, while the Future Buyers’ Sentiment Index edged down. The two indices are almost at parity.
SMU Survey: Mill lead times stretch to 10-month highs
Buyers responding to our latest market survey reported that steel mill lead times were stretching out this week for sheet and plate products tracked by SMU. The results weren’t much of a surprise. Production times have begun moving out following a wave of frenzied buying in response to stricter Section 232 announced by the Trump […]
SMU Survey: Mills slam door on buyers looking to talk price
Mills’ flexibility on price for spot orders has taken a nosedive to levels not seen since the end of March 2023.
SMU Survey: Steel Buyers’ Sentiment indicates increased optimism
After reaching multi-month lows in mid-January, SMU’s Steel Buyers’ Sentiment Indices rebounded this week to some of the highest readings recorded in months.
SMU Survey: Mill lead times fluctuate, extensions expected
While we have seen some movements in recent weeks, steel mill production times remain within a few days of the historical lows observed over the last two years, a trend observed since mid-2024.