Steel Mill Negotiations: Majority Say Prices in Play

For a steel industry that is hoping to collect higher prices on flat rolled and plate products, the mills seem surprisingly willing to negotiate, according to the findings from Steel Market Update’s latest market trends questionnaire. Well, then again, when you announce $120 per ton of base price increases (or more, depending on what your starting point was) there is a lot more room to negotiate.

The steel mills increased prices three times in the span of a month beginning in late June for a total of $120 per ton and have collected roughly half so far. SMU’s average benchmark price for hot rolled has risen to $580 per ton from a low of $520 on June 25. Some observers expect additional price announcements from the mills in the coming days or weeks. SMU’s Price Momentum Indicator is still pointing Higher, but prices appear to be in play.