SMU Data and Models
Steel Mill Negotiations: Sideways Except Galvalume
Written by John Packard
July 23, 2015
Last week, Steel Market Update adjusted our Price Momentum Indicator to Neutral from Higher. A portion of that change was due to the domestic steel mills continuing to be willing to negotiate flat rolled steel pricing.
In this week’s flat rolled steel market analysis, those responding to our questionnaire reported all but Galvalume as being highly negotiable (70 percent level or higher). Hot rolled (73 percent, cold rolled (77 percent) and galvanized (76 percent) improved modestly during the month of May and have essentially trended sideways since.
The one exception is Galvalume where we have seen AZ move below 50 percent for the first time in many months. The current level at 33 percent is the first time we have seen levels at, or under, 40 percent since early August of last year.
To see an interactive history of our Steel Mill Negotiations data, visit our website here.
John Packard
Read more from John PackardLatest in SMU Data and Models
SMU’s December at a glance
SMU’s Monthly Review provides a summary of important steel market metrics for the previous month. Our latest report includes data updated through December 31st.
SMU Survey: Steel Buyers’ Sentiment Indices contrast at year end
Both of our Sentiment Indices remain in positive territory and indicate that steel buyers are optimistic about the success of their businesses.
SMU Survey: Mill lead times contract slightly, remain short
Steel mill production times have seen very little change since September, according to buyers participating in our latest market survey.
SMU Survey: Buyers report mills are slightly less flexible on pricing
Steel buyers of sheet and plate products say mills are still willing to bend on spot pricing this week, though not quite as much as they were two weeks prior, according to our most recent survey data.
December energy market update
Trends in energy prices and active rig counts are leading demand indicators for oil country tubular goods (OCTG), line pipe and other steel products