SMU Survey: Steel Mill Consolidation

Steel Market Update (SMU) conducted our mid-September flat rolled steel market analysis this week. We invited slightly more than 600 companies to participate in the latest survey which analyzes various trends which affect the flat rolled steel market. One set of questions had to do with the consolidation of the steel mills as SDI and AK Steel absorbed the former Severstal NA mills this week and Nucor has announced the purchase of Gallatin Steel.

First, we wanted to know how consolidation would affect the business relationships companies have with their suppliers. Would consolidation make negotiations more or less difficult or would there be no impact what-so-ever.