SMU Data and Models
Mill Price Negotiations on Flat Rolled Vary by Product
Written by John Packard
August 18, 2016
Based on the results of our flat rolled steel market trends survey that Steel Market Update (SMU) conducted all week, steel mills are receptive to negotiate steel prices on some products and less so on others. We are seeing the mills being fairly aggressive on hot rolled price negotiations with 83 percent of our survey respondents reporting the mills as willing to negotiate. On the other end of the spectrum is Galvalume, used in metal buildings and other building products that are in peak season right now, where only 22 percent of our respondents reported the mills as willing to negotiate price on AZ products.
Cold rolled, which has seen lead times slipping over the past two weeks, saw the percentage of respondents reporting the mills as willing to negotiate rise to 43 percent. This is up 20 percent since early August and up 43 percent since June.
Galvanized is another product where lead times have shrunk and the percentage of those reporting the mills as willing to negotiate pricing rose from 39 percent to 59 percent. Back in June, GI was reported at 5 percent.
A side note: The data for both lead times and negotiations comes from only service center and manufacturer respondents. We do not include commentary from the steel mills, trading companies, or toll processors in this particular group of questions.
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 market survey results now available
SMU’s latest steel buyers market survey results are now available on our website to all premium members. After logging in at steelmarketupdate.com, visit the pricing and analysis tab and look under the “survey results” section for “latest survey results.” Past survey results are also available under that selection. If you need help accessing the survey results, or if […]
SMU Survey: Steel Buyers’ Sentiment Indices rebound
Following months of fluctuations, SMU’s Steel Buyers’ Sentiment Indices rebounded this week, now at multi-month highs. Both of our Indices remain in positive territory and indicate that steel buyers are optimistic about the success of their businesses.
SMU Survey: Mill lead times remain stable and short
Steel buyers participating in our market survey this week reported stable mill lead times for both sheet and plate steel products.
SMU Survey: Most buyers report mills still willing to talk price
Most steel buyers SMU polled this week reported that mills remain willing to negotiate new order pricing.
October service center shipments and inventories report
Flat rolled = 63.4 shipping days of supply Plate = 52.4 shipping days of supply Flat rolled shipments and inventories Flat-rolled steel supply at US service centers remains seasonally high. October inventories increased after edging lower in September – a dynamic driven largely by disappointing demand. October’s report reflects lower demand and stable lead times […]