SMU Data and Models
September 6, 2018
Steel Mill Negotiations: Buyers Gain Leverage
Written by Tim Triplett
Steel buyers appear to have considerably more leverage in mill negotiations than at any other point this year. Twice per month, in a proprietary poll, Steel Market Update tracks how buyers and sellers of flat rolled steel represent the mill negotiation position. Most buyers report that mills are willing to negotiate spot prices today.
According to respondents to this week’s market trends questionnaire, 87 percent of hot rolled buyers said they have found mills willing to talk price, up from just 18 percent two months ago, and up from 71 percent two weeks ago. Just 13 percent said mills currently remain firm on price.
