SMU Data and Models
Steel Mill Negotiations: Price Talks Mixed
Written by Tim Triplett
July 8, 2018
Steel mills appear slightly more willing to negotiate spot prices on cold rolled and less open to price discussions on hot rolled, galvanized and Galvalume products, according to respondents to last week’s Steel Market Update market trends questionnaire. Every two weeks, in a proprietary poll, SMU tracks how buyers and sellers of flat rolled steel represent the mill negotiation position.
By market segment, 18 percent of hot rolled buyers said they have found mills willing to negotiate, up from 14 percent one month ago. Most, 82 percent, said the hot rolled mills are still standing firm.
In the cold rolled segment, 52 percent said they have found some mills willing to talk price, up from 33 percent in early June. Forty-eight percent of respondents reported mill prices on cold rolled as non-negotiable.
Prices on coated products appear to have firmed up. In the galvanized sector, 39 percent said the mills were open to price discussions, down from 50 percent in mid-June. About 33 percent of Galvalume buyers said mills are now willing to talk price, down from 57 percent two weeks ago.
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.
Tim Triplett
Read more from Tim TriplettLatest in SMU Data and Models
SMU Survey: Steel Buyers’ Sentiment Indices contrast at year end
Both of our Sentiment Indices remain in positive territory and indicate that steel buyers are optimistic about the success of their businesses.
SMU Survey: Mill lead times contract slightly, remain short
Steel mill production times have seen very little change since September, according to buyers participating in our latest market survey.
SMU Survey: Buyers report mills are slightly less flexible on pricing
Steel buyers of sheet and plate products say mills are still willing to bend on spot pricing this week, though not quite as much as they were two weeks prior, according to our most recent survey data.
December energy market update
Trends in energy prices and active rig counts are leading demand indicators for oil country tubular goods (OCTG), line pipe and other steel products
Apparent steel supply remained near two-year low in October
Referred to as ‘apparent steel supply’, we calculate this volume by combining domestic steel mill shipments with finished US steel imports and deducting total US steel exports.