SMU Data and Models

Mills Still Stingy in Negotiating Prices (But Not as Much as 1 Month Ago)
Written by John Packard
May 3, 2018
Extended lead times will generally lead to steel mills being stingy about offering “deals” below the company pricing guidelines. Flat rolled steel prices have essentially plateaued. There may be a small number of “deals” out there (is $860 HRC really a “deal?”), but most mills are sticking to their guns.
In all four products (hot rolled, cold rolled, galvanized and Galvalume) about one-quarter of the respondents report that their mill suppliers are being responsive to some price negotiations.
We will need to watch lead times and negotiations closely as our Sentiment Index is pointing toward possible weakening in the market.
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.

John Packard
Read more from John PackardLatest in SMU Data and Models

SMU Survey: Steel mill lead times show diverging trends
Buyers responding to our latest market survey reported that sheet lead times continue to gradually decline from recent highs. Meanwhile, plate lead times increased to levels last seen one year ago.

SMU Survey: Mills unlikely to budge on price, buyers say
Four out of every five steel buyers who responded to our latest market survey say domestic mills are unwilling to negotiate on new order spot pricing. Mills have shown little flexibility on pricing for nearly two months.

SMU’s March at a glance
SMU’s Monthly Review provides a summary of our key steel market metrics for the previous month, with the latest data updated through March 31.

SMU Survey: Steel buyers maintain confident market outlook
SMU’s Buyers’ Sentiment Indices showed mixed movements this week but remain strong, reflecting continued confidence among steel buyers.

SMU Survey: Perspectives differ on impact of Trump tariffs
Are President Trump's tariff policies helping? Steel buyers offer their opinions on the impact of Trump's tariffs.