SMU Data and Models
Steel Mill Negotiations: Pricing's on the Table
Written by Tim Triplett
May 9, 2019
With steel prices moving down or sideways and demand softening in some markets, it’s no surprise that most mills are willing to talk price to win business in the current environment. Eight out of 10 of the flat rolled steel buyers responding to Steel Market Update’s questionnaire this week report that prices are in play on hot rolled, cold rolled and coated steels. As seen by the upward slope of the green bars in the chart below, negotiations on steel products have been loosening up since March.
About 89 percent of respondents said the mills are open to price negotiations on hot rolled, up from 86 percent two weeks ago. Just 11 percent said the mills are currently holding the line on HR.
In the cold rolled segment, 83 percent now report the mills open to price negotiations, up from 73 percent two weeks ago. Just 17 percent report current cold rolled prices as firm.
In the galvanized sector, 83 percent said the mills are flexible on price, a big jump from just 68 percent in the last poll. Just 17 percent report that galvanized prices are now nonnegotiable. Nearly the same percentage said the mills are now willing to talk price on Galvalume as well.
Even negotiations on plate have loosened a bit, with 60 percent of buyers now reporting some flexibility in plate prices.
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 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.” Past survey results are also available under that selection. If you need help accessing the survey results, or if […]
SMU Survey: Steel Buyers’ Sentiment Indices rebound
Following months of fluctuations, SMU’s Steel Buyers’ Sentiment Indices rebounded this week, now at multi-month highs. Both of our Indices remain in positive territory and indicate that steel buyers are optimistic about the success of their businesses.
SMU Survey: Mill lead times remain stable and short
Steel buyers participating in our market survey this week reported stable mill lead times for both sheet and plate steel products.
SMU Survey: Most buyers report mills still willing to talk price
Most steel buyers SMU polled this week reported that mills remain willing to negotiate new order pricing.
October service center shipments and inventories report
Flat rolled = 63.4 shipping days of supply Plate = 52.4 shipping days of supply Flat rolled shipments and inventories Flat-rolled steel supply at US service centers remains seasonally high. October inventories increased after edging lower in September – a dynamic driven largely by disappointing demand. October’s report reflects lower demand and stable lead times […]