SMU Data and Models
April 7, 2016
Steel Mill Negotiations: All the Chips are on the Mill Side
Written by John Packard
Buyers and sellers of flat rolled steel reported to Steel Market Update this past week that the domestic steel mills are less willing to negotiate steel prices. We believe this is due to strengthening order books, extending lead times, positive Sentiment and improving demand.
In fact, we were learning throughout the day today that many mills are either not in the spot market at all, or their order books are currently closed pending settlement of scrap pricing and having a couple of the larger mills (such as SDI) open their books.
