SMU Data and Models
February 25, 2018
Steel Mill Negotiations: Mills in the Driver's Seat
Written by Tim Triplett
Steel prices have been on the rise for the past four months, so it’s no surprise that steel buyers are reporting mills less willing to negotiate. More than 60 percent of respondents to Steel Market Update’s latest market trends questionnaire say mills are holding firm in price negotiations. About 10 percent say they still find some suppliers willing to talk price. The remainder have had mixed success in negotiating better buys.
By market segment, 83 percent of SMU respondents said the mills are holding firm on hot rolled steel orders, while only 17 percent have found mills willing to negotiate. That compares to 69 percent holding the line and 31 percent open to price negotiations on hot roll two weeks ago.
