SMU Data and Models
November 2, 2017
Steel Mills Willing to Talk Price
Written by John Packard
According to the buyers and sellers of flat rolled steel, the domestic steel mills are willing to negotiate spot steel prices. The percentages of those reporting the mills as willing to negotiate has shrunk, but continues to be well above 50 percent. This is a bit of a surprise considering the price announcements made in mid-October by ArcelorMittal USA and most of the other domestic steel mills.
The strongest move was with hot rolled steel, where the percentage of respondents reporting domestic mills as willing to negotiate on HRC shrunk from 92 percent to 65 percent (27 percent lower). It is necessary to go back to August 2017 to find the steel buyers reporting mills less willing to negotiate prices than they are today.
