Steel Mill Negotiations: No Clear Trend Yet

With steel prices in transition following last month’s price increase announcement from the major mills, the tone of negotiations between producers and buyers appears mixed. The majority of buyers report the mills are still willing to talk price on all products but plate, but fewer in the high-demand categories of hot rolled and galvanized. Most buyers responded to Steel Market Update’s questionnaire prior to the second round of price increases announced this week. SMU will be watching closely for changes in mill negotiations and lead times in the next market canvas.

In the hot rolled category, 64 percent of buyers responding to SMU’s latest questionnaire said they have found mills willing to negotiate on price. That percentage is down from 69 percent two weeks ago and from 86 percent in mid-January. More than a third of the buyers, 36 percent, say the mills are now holding the line on HR.