SMU Data and Models
Steel Mills Not Yet Negotiating from a Position of Strength
Written by John Packard
May 21, 2015
U.S. and Canadian steel buyers reported mills as less willing to negotiate flat rolled steel prices (hot rolled, cold rolled, galvanized and Galvalume prices) at the beginning of the month of May. Prior to that, the domestic steel mills had been extremely active and willing to negotiate pricing on all products. This, according to our flat rolled steel market survey conducted during the first week of May.
Steel Market Update (SMU) conducted our mid-May survey beginning on Monday of this week concluding our analysis earlier today. We found improvements (respondents reporting mills as less willing to negotiate pricing) on hot rolled and galvanized. The cold rolled and Galvalume results were slightly less optimistic as more respondents reported the mills as willing to negotiate than what we saw at the beginning of the month.
However, the rate of change was miniscule on virtually all products and we are not yet convinced that the industry is able to collect much higher pricing based on these results. We would call the results as being mixed at best and still a far cry from where the domestic mills need to be to push prices even higher from here.
Steel Market Update believes the domestic mills need to get lead times out another week on various products in order to improve their negotiating positions.
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.