SMU Data and Models
January 10, 2019
Steel Mill Negotiations: A Subtle Shift
Written by Tim Triplett
Steel Market Update’s first canvass of the new year shows a subtle shift in the price dynamic between mills and steel buyers. No doubt, buyers still have a lot of leverage and most mills are usually willing to talk price to secure the order. But SMU’s findings show a slight tightening in negotiations.
In the hot rolled category, 83 percent of buyers responding to SMU’s questionnaire said they have found mills willing to talk price. That’s a high percentage, but it’s down from 91 percent in mid-December. About 17 percent say the mills are now holding the line on HR.
