Steel Mill Negotiations: Price in Play

Twice per month Steel Market Update canvasses the flat rolled and plate steel markets as we look to identify key market metrics. One of those is whether the steel mills are working with their steel buying customers and are they willing to negotiate steel pricing for orders placed this week for delivery based on existing mill lead times. Steel Market Update data shows the momentum on flat rolled steel pricing has been trending lower for a few months. Therefore, it’s no surprise the vast majority of buyers tell SMU that mills were willing to negotiate pricing on new orders placed this week. The exception is the plate market, where the mills still hold the negotiating advantage.

Steel Market Update tracks how buyers and sellers of flat rolled and plate steel characterize price negotiations with the mills. About nine out of 10 respondents to SMU’s latest market trends questionnaire report that the mills are open to price discussions on hot rolled, cold rolled, galvanized and Galvalume steel products.