Steel Mill Negotiations: Mills Stand Firm

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.