SMU Data and Models
November 10, 2019
Steel Mill Negotiations: Mills Still Willing to Deal?
Written by Tim Triplett
Not surprisingly following the mills’ $40 price increase announcements Oct. 24-25, negotiations between steelmakers and steel buyers have tightened somewhat. What is surprising is that roughly two out of three buyers still report mills actively negotiating spot prices on hot rolled, cold rolled and galvanized, as well as plate.
In the hot rolled segment, 62 percent of those responding to Steel Market Update’s questionnaire this week said the mills were still open to price talks. While that’s down 30 points from 92 percent in mid-October, that still means only 38 percent report their mill suppliers now holding the line on prices.
