SMU Data and Models
May 9, 2019
Steel Mill Negotiations: Pricing's on the Table
Written by Tim Triplett
With steel prices moving down or sideways and demand softening in some markets, it’s no surprise that most mills are willing to talk price to win business in the current environment. Eight out of 10 of the flat rolled steel buyers responding to Steel Market Update’s questionnaire this week report that prices are in play on hot rolled, cold rolled and coated steels. As seen by the upward slope of the green bars in the chart below, negotiations on steel products have been loosening up since March.
About 89 percent of respondents said the mills are open to price negotiations on hot rolled, up from 86 percent two weeks ago. Just 11 percent said the mills are currently holding the line on HR.
