SMU Data and Models
February 20, 2020
Steel Mill Negotiations: A Buyer's Market?
Written by Tim Triplett
Price negotiations with the mills have continued to loosen up as it’s rapidly becoming a buyer’s market. The vast majority of service center and manufacturing executives responding to Steel Market Update’s questionnaire this week said the mills are open to price negotiations on nearly all products to win the orders.
In the hot rolled segment, 85 percent of the steel buyers said the mills are now willing to negotiate prices on HR, up 27 points from 58 percent at this time last month. The percentage reporting mills holding the line on HR has declined to just 15 percent.
