SMU Data and Models
Steel Mills Still Willing to Negotiate Flat Rolled Steel Prices
Written by John Packard
April 9, 2015
According to our survey respondents not much has changed when it comes to how willing steel mills are to negotiate hot rolled, cold rolled, galvanized and Galvalume steel pricing.
Lead times continue to remain short and order books weak. This has created a situation whereby steel mills have to be competitively priced in order to book new spot orders. Especially when considering the $140 per ton drop in pricing (HRC) since the end of December 2014 to this week.
A coating mill provided some comments to Steel Market Update separate from our survey but they are germane to the subject of mill negotiations. We were told, ““Demand is a bit soft but more inquiries are in process now than in recent months. Everyone is digging for the best price. My take is that there is biz to be had for Q3, but that the range between lowest and highest base is narrowing. Not so much erosion on the low end of the base, but some on high end of the range as customers seem to be ready to actually place orders soon and they won’t unless they get a deal.”
As you can see by the graphic below all of the flat rolled products are “in play” and negotiable.
To view the interactive history of the graphic above, visit the Steel Mill Negotiations page on the Steel Market Update website here.
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.