SMU Data and Models
December 19, 2019
Steel Mill Negotiations: Tighten a Bit More
Written by Tim Triplett
Negotiations between steelmakers and steel buyers continue to tighten. Responses to Steel Market Update’s market trends questionnaire this week indicate the mills are slightly less flexible on price for most products as they work to collect four increases announced since late October totaling $150 per ton.
In the hot rolled segment, the majority of buyers (60 percent) said the mills are no longer willing to negotiate prices on HR. The other 40 percent said the mills were still open to price talks. A month ago, finding a mill that was willing to discount was a 50-50 proposition. In the cold rolled segment, the majority (55 percent) said spot prices are now non-negotiable.
