SMU Data and Models
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/media/k2/items/src/4aa8b6f3fb7fdd4cca6b7dc38e26082d.jpg)
Steel Mill Negotiations: Mills Stand Firm
Written by Tim Triplett
March 22, 2018
With President Trump’s steel tariff set to kick in on Friday, domestic steelmakers remain in a strong pricing position. Buyers responding to this week’s SMU market trends questionnaire reported most mills unwilling to bend much when it comes to steel product prices, except in some cases for large orders.
By market segment, 91 percent of SMU respondents said the mills are holding firm on hot rolled steel prices, while only 9 percent have found mills willing to negotiate—about the same as two weeks ago.
In the cold rolled segment, only 6 percent said they have found some mills willing to talk price, while the vast majority (94 percent) reported mill prices on cold rolled as non-negotiable.
In the galvanized sector, about 82 percent of respondents said the mills are now standing firm on galvanized prices, while 18 percent said some mills are still open to negotiation on coated products. That’s more than a 20-point shift from just one month ago when 60 percent said mills were holding the line.
Negotiations also have tightened further for Galvalume. Two weeks ago, 71 percent of buyers reported that mills were not open to price discussions. Today, 92 percent said mills are unwilling to compromise on Galvalume prices.
Buyers tell SMU that only a few mills are flexible on price, and then only on large tonnages. Said one: “I have not tried to negotiate at these price levels. I avoid buying if possible as my cheaper tons from Q4 should keep me going for a few months.”
Note: SMU surveys active steel buyers twice each month to gauge the willingness of their steel suppliers to negotiate pricing. The results reflect current steel demand and changing spot pricing trends. SMU provides our members with a number of ways to interact with current and historical data. To see an interactive history of our Steel Mill Negotiations data, visit our website here.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2023/04/tim-triplett.jpeg)
Tim Triplett
Read more from Tim TriplettLatest in SMU Data and Models
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2024/01/cropped-SMU_Mobile_final.png)
SMU’s August at a glance
SMU’s Monthly Review provides a summary of important steel market metrics for the previous month. Our August report includes data updated through August 30th.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/Premium1.png)
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.”
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2024/01/cropped-SMU_Mobile_final.png)
SMU survey: Lead times edge higher for sheet
Current steel mill lead time averages are a few days longer than levels seen one month prior, but remain near historical lows for both sheet and plate products.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2024/01/cropped-SMU_Mobile_final.png)
SMU survey: Steel Buyers’ Sentiment Indices surge
Both our Current and Future Indices are now up to multi-month highs, indicating continued optimism among steel buyers.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2024/01/cropped-SMU_Mobile_final.png)
SMU survey: Mills’ flexibility on prices up slightly
Steel buyers found mills slightly more willing to negotiate spot prices this week, according to our most recent survey data. Though this negotiation rate has ticked up vs. our previous market check, overall rates have been trending downward since July’s highs.