SMU Data and Models
June 2, 2016
Steel Mill Negotiations: Buyers Beware
Written by John Packard
Blue is the color of the sky and that may be the limit when it comes to domestic steel mills need to negotiate flat rolled steel pricing. Based on the results from this week’s flat rolled market trends analysis produced by Steel Market Update, steel buyers and sellers are reporting, almost unanimously, that all of the steel price negotiating cards are in the hands of the domestic steel mills.
With lead times extended, foreign supply disrupted due to the ongoing dumping suits, supply constrained with a few blast furnaces being down and inventories tightening at the service center level, it is a perfect storm for the steel mills.
