SMU Data and Models
Steel Mill Negotiations: Not Much Movement
Written by John Packard
January 5, 2017
Steel mills continue to feel comfortable when negotiating with their customers. We found that only one quarter of the steel buyers responding to our survey for this week reported the mills as willing to discuss the possibility of adjusting (lowering) steel spot prices. We found this to be consistent across all flat rolled products: hot rolled, cold rolled, galvanized and Galvalume steels.
With the combination of respectable lead times (not too long, not too short but, just about right) the mills are comfortable holding prices firm and raising them as market forces (such as increasing scrap prices or lower than expected inventories at service centers) allow.
Here is what our graphic looks like this week:
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 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.