SMU Data and Models
SMU Survey: Most mills still willing to talk price
Written by Brett Linton
January 23, 2025
The majority of steel buyers we surveyed this week continue to report mills are willing to negotiate prices on new spot orders, though not as much as they were in early-January.
Every other week, SMU polls hundreds of service center and manufacturer buyers asking if domestic mills are open to negotiation on new spot order prices. This week, seven out of every 10 buyers reported that mills would talk price to secure a new order (Figure 1). This rate is lower compared to the 80%+ rates we had seen for the previous three months, now similar to those seen in September 2024.
Negotiation rates by product
Negotiation rates were stronger on coated and plate products this week vs. hot rolled and cold rolled (Figure 2). The most significant changes observed from our previous survey were in hot-rolled and cold-rolled rates. Negotiation rates by product this week are:
- Hot rolled: 70%, down 18 percentage points from Jan. 22, and the lowest rate observed since last September.
- Cold rolled: 60%, down 15 percentage points to the lowest rate seen in 10 months.
- Galvanized: 86%, down four percentage points.
- Galvalume: 88%, up three percentage points to the highest rate since November.
- Plate: 82%, down 8 percentage points to the lowest rate witnessed since last October.
Here’s what some survey respondents had to say:
“Some mills will negotiate, some will not.”
“Less willing [on hot rolled] than last week.”
“Negotiable [on cold rolled], although much tighter.”
“Negotiable on plate with tons.”
“Tonnage will still offer some discount [on hot rolled].”
“Depends on how much [hot rolled] you’re buying.”
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 to see an interactive history of our steel mill negotiations data.
Brett Linton
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