SMU Data and Models
SMU Survey: Overall mill negotiation rate at highest point on record
Written by Brett Linton
October 24, 2024
More than nine out of every 10 steel buyers polled by SMU this week reported that mills are flexible on prices for new orders. Negotiation rates have been strong since April and on the rise since early September.
SMU polls hundreds of steel market executives every two weeks, asking if domestic mills are willing to negotiate prices on new spot orders. As shown in Figure 1, 93% of all buyers surveyed this week reported that mills were willing to talk price. This is the highest overall negotiation rate recorded since we started tracking this measure in early 2021, surpassing the early July high of 92%.
Negotiation rates by product
As seen in Figure 2, negotiation rates increased this week for all sheet and plate products and are now up to levels last seen in July. Negotiation rates were highest for coated and cold-rolled products. The largest gains from our prior survey were seen in plate and cold-rolled rates. Negotiation rates by product this week are:
- Hot rolled: 88%, up nine percentage points from Oct. 9 and the highest rate recorded since mid-July.
- Cold rolled: 94%, up 21 percentage points and the highest rate since early July.
- Galvanized: 100%, up 12 percentage points and the highest rate since mid-July.
- Galvalume: 100%, up eight percentage points and the highest rate seen since May 2023.
- Plate: 90%, up 27 percentage points from an eight-month low and the highest rate since late July.
Here’s what some survey respondents had to say:
“Depends on the mill, but volume [hot rolled] orders carry a discount.”
“Larger buys are getting better prices.”
“Plate mills are hungry for work. Mills who haven’t been participants are now calling regularly.”
“Can buy much lower pricing for significant tons.”
“Depends on how many [hot rolled] tons you want to buy.”
Note: SMU surveys active steel buyers every other week to gauge their steel suppliers’ willingness to negotiate new order prices. The results reflect current steel demand and changing spot pricing trends. Visit our website for an interactive history of our steel mill negotiations data.
Brett Linton
Read more from Brett LintonLatest 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 […]