SMU Data and Models
December 5, 2019
Steel Mill Negotiations: Talks Tighter
Written by Tim Triplett
As flat rolled steel prices rise, it comes as no surprise that negotiations between mills and steel buyers continue to tighten. Responses to Steel Market Update’s market trends questionnaire this week indicate that mills are less flexible on price as they work to collect three increases announced since late October totaling $110 per ton.
In the hot rolled segment, the majority of buyers (56 percent) said the mills are no longer willing to negotiate prices on HR. The other 44 percent said the mills were still open to price talks. A month ago that ratio was reversed as more than 60 percent reported the mills were offering discounts.
