SMU Data and Models
Steel Prices May be Down but Steel Mills Still Willing to Negotiate
Written by John Packard
March 22, 2015
Based on the results from our most recent flat rolled steel market analysis which we conducted this past week, manufacturing companies and service centers reported domestic (USA and Canada) steel mills as willing to negotiate pricing on hot rolled, cold rolled, galvanized and Galvalume steel coils.
As you can see by the graphic shared below, since the beginning of December the respondents to our survey have been almost unanimous in their depiction of the mills as willing to negotiate pricing on all products.
It is our opinion the willingness to negotiate is due to: excessive inventories at the service centers which has caused many of the service centers to adjust inventories by not buying or slowing down their purchases of domestic steel, the rapid deterioration of the energy sector due to the massive drop in oil prices, huge amounts of imported steel which the mills have to compete against and lower than normal lead times – a direct result of weak order books.
Below is an interactive graphic of the SMU Mill Lead Times History, but it can only be seen when you are logged into the website and reading the newsletter online. If you need any assistance logging in or navigating the website, contact us at info@SteelMarketUpdate.com or 800-432-3475.
{amchart id=”113″ SMU Negotiations by Product- Survey}
John Packard
Read more from John PackardLatest in SMU Data and Models
Steelmaking raw material prices mixed in January
Prices for the seven steelmaking raw materials SMU tracks moved in differing directions from December to January, according to our latest analysis.
SMU Survey: Steel Buyers’ Sentiment Indices slip
SMU’s Steel Buyers’ Sentiment Indices saw a slight decline this week, slipping to levels last observed in early November
SMU Survey: HR, CR and plate lead times up, coated products down
Steel mill lead times were mixed across the sheet and plate products SMU tracks, according to buyers responding to our latest market survey.
SMU Survey: Most mills still willing to talk price
The majority of steel buyers we canvassed this week continue to report that mills are willing to negotiate prices on new spot orders, though not as much as they were in early-January.
SMU Survey: Steel Buyers’ Sentiment Indices stable to start 2025
Both SMU Steel Buyers' Sentiment Indices remain in positive territory, indicating that steel buyers are optimistic about the success of their businesses.