SMU Data and Models
January 18, 2018
Steel Mill Negotiations: Some Tightening?
Written by Tim Triplett
The mills are clearly trying to collect the price increases they announced on flat roll in December and January, but they appear to be experiencing only some success. About 40 percent of steel buyers responding to the latest Steel Market Update market trends questionnaire say they have found their mill suppliers unwilling to negotiate on price. That compares to 25 percent reporting mills holding the line earlier in the month. So, talks have tightened up. On the flipside, however, that means that 60 percent of buyers are still finding some mills willing to talk price on certain products at least some of the time. When the majority view is that mills have some flexibility on price, what does that say about their ability to collect the latest increases?
Following are some buyers’ comments about mill negotiations:
