Steel Products
Sheet Products Mixed, But Plate Negotiation Rate Soars
Written by Ethan Bernard
August 17, 2023
The mill negotiation rate was mixed this week for sheet products but relatively level, while the rate for plate jumped over 15 percentage points from two weeks earlier, according to SMU’s most recent survey data.
The percentage of respondents saying steel mills were willing to talk price on plate rose to 57% this week, up from 41% at the last market check.
Every two weeks, SMU asks steel buyers whether domestic mills are willing to negotiate lower spot pricing on new orders. This week, (Figure 1) 80% of participants surveyed by SMU reported mills were willing to negotiate price on new orders, rising two percentage points from two weeks earlier. This is the first time it’s topped 80% since the end of June.
Figure 2 below shows negotiation rates by product. Hot rolled fell one percentage point to 90% of buyers reporting mills more willing to negotiate price vs. two weeks earlier; cold rolled stood at 86% (+3); galvanized at 95% (+1); and Galvalume at 75% (-9). Recall that Galvalume can be more volatile because we have fewer survey participants there.
Here are some comments about what people are saying in the market:
“We aren’t bringing in anything (hot rolled) mill direct right now, but we’re certainly get unsolicited calls from reps.”
“If you are willing to buy, there is a negotiation (for hot rolled) to be had.”
Note: SMU surveys active steel buyers every other week 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.
Ethan Bernard
Read more from Ethan BernardLatest in Steel Products
US HR price premium over imports narrows slightly
Hot-rolled (HR) coil prices ticked down in the US last week, while tags abroad varied. The result: US hot band margin over imports on a landed basis has narrowed to a slight extent. SMU’s average domestic HR price last week was $685 per short ton (st), down $5/st from the week before. US hot band […]
SMU Community Chat: Jan. 22 with Alan Kestenbaum, founder of Bedrock Industries
Alan Kestenbaum, the founder of Bedrock Industries and the former CEO of Stelco, will be the featured speaker on the next SMU Community Chat. The webinar will be on Wednesday, Jan. 22, at 11 am ET. It’s free to attend. You can register here. We’ll look at Stelco’s recent sale to Cleveland-Cliffs and what made […]
December service center shipments and inventories report
Flat rolled = 77.1 shipping days of supply Plate = 58.1 shipping days of supply Flat rolled Flat-rolled steel supply at US service centers ballooned in December with higher inventories as well as seasonally lower shipments. At the end of December, service centers carried 77.1 shipping days of flat-rolled steel supply on an adjusted basis, […]
SMU Community Chat replay now available
The latest SMU Community Chat webinar reply is now available on our website to all members. After logging in at steelmarketupdate.com, visit the community tab and look under the “previous webinars” section of the dropdown menu. All past Community Chat webinars are also available under that selection. If you need help accessing the webinar replay, or if your company […]
Galvanized buyers see glimmers of optimism amidst the chaos
Reflecting on 2024 and looking ahead to the new year, galvanized steel buyers on this month’s HARDI call expressed a mix of cautious optimism with lingering uncertainties.