SMU Data and Models
February 6, 2020
Steel Mill Negotiations: Buyers See Some Wiggle Room
Written by Tim Triplett
Price negotiations between steelmakers and steel users have loosened considerably on most steel products. Buyers report some new wiggle room in talks over spot prices.
In the hot rolled segment, nearly three out of four of the steel buyers responding to SMU’s questionnaire this week (74 percent) said the mills are now more willing to negotiate prices on HR. That’s up from 58 percent two weeks ago and a 30-point jump from this time last month. The percentage reporting mills holding the line on HR has declined to just 26 percent.
