SMU Data and Models
Steel Mills Taking Much Firmer Stand on Steel Price Negotiations
Written by John Packard
December 8, 2016
According to those participating in this week’s flat rolled steel market trends survey the domestic steel mills are taking a firm stance to price negotiations. Since the first price increase announcements were made in late October the percentage of steel buyers reporting the mills as willing to negotiate prices has dropped from a high of 100 percent on hot rolled in mid-October to only 23 percent today.
We are seeing similar results with other flat rolled products as well.
The percentage of buyers reporting the mills as willing to negotiate cold rolled prices dropped from 92 percent in mid-October to 22 percent this week.
Only 18 percent of our respondents reported the mills as willing to negotiate galvanized pricing. In mid-October that number was 86 percent.
Galvalume was even more impressive as zero percent of our respondents reported the mills as willing to negotiate AZ pricing. In mid-October that number was 86 percent.
The less willing the mills are to negotiate pricing the firmer prices become.
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 […]