Steel Mill Negotiations: More Room to Negotiate?

Pricing from the mills is considerably tighter than it was a month ago, when virtually every deal was open to negotiation. Yet Steel Market Update data indicates the flat rolled mills are still surprisingly flexible when it comes to spot prices even as they work to collect two $40 price increases announced in the past month.

In the hot rolled segment, it’s a 50-50 proposition whether a buyer will find a mill willing to negotiate prices on HR. Half of those responding to SMU’s questionnaire this week said the mills were still open to price talks, while the other half said the mills were holding the line. That’s down more than 40 points from the 92 percent in mid-October who said prices were fully in play.