Steel Mill Negotiations: Talks Tightening?

Buyers of flat rolled steel report that domestic steel mills are tightening up negotiations a bit on spot pricing, especially on cold rolled and coated products, as would be expected following the price increases announced two weeks ago. But the majority report that mills are still generally open to price discussions as the year comes to a close.

About 18 percent of respondents to SMU’s latest steel market questionnaire say order books are firm and there’s no negotiation. About the same percentage have found order books weaker than advertised and mills willing to negotiate. Most, about 64 percent, report mixed responses from mills in price talks. “Deals are there to be made, not drastic deals, but prices are not as advertised,” said one buyer. It depends on the product, added another. “HRC is more stable on the West Coast. CRC and coated are dependent on buyer and quantity.”