Steel Mill Negotiations: Mills Still Hold the Upper Hand

Steel Market Update conducted our early April survey earlier this week. One of the key proprietary products produced is how buyers and sellers of flat rolled represent the mill negotiation position. Are steel mills willing to negotiate spot prices on new orders at this time? Buyers responding to this week’s SMU market trends questionnaire reported a slight loosening in mill negotiations. A few more buyers of hot rolled and cold rolled steels said they have found mills willing to bend a bit on price, especially for large orders. However, from a historical perspective, steel mills continue to be stingy on hot rolled, cold rolled, galvanized and Galvalume spot pricing.

By market segment, 19 percent of hot rolled buyers said they have found mills willing to negotiate, compared with just 9 percent two weeks ago—a 10-point swing. But the vast majority, 81 percent, said the hot rolled mills are still holding firm.