Steel Mill Negotiations: Little Change in Tone of Talks

There has been little change in the tone of price talks over the past two weeks. The majority of buyers continue to report that mills generally are willing to negotiate to secure spot orders, even as they work to collect recent price increases on flat rolled and plate products.

Since late June, the mills have increased flat rolled prices three times for a total of $120 per ton, and plate prices twice for a total of $80 per ton. SMU’s average benchmark price for hot rolled has risen to $585 per ton this week from a low of $520 on June 25, so the mills have managed to collect a portion of the increase. SMU’s Price Momentum Indicator is still pointing Higher, but prices appear to be very open for discussion.