SMU Data and Models
March 22, 2020
Steel Mill Negotiations: Like Market, Prices in Flux
Written by Tim Triplett
Steel producers and distributors told Steel Market Update this week that they remain busy serving customers, despite the disruption to the economy from the coronavirus. Not surprisingly, the mills appear very willing to negotiate spot prices to keep business flowing. The majority of service center and manufacturing executives responding to SMU’s questionnaire on Monday and Tuesday said the mills are talking price on all types of products.
In the hot rolled segment, 73 percent of the steel buyers said the mills are willing to negotiate prices on HR, up 10 points from 63 percent in early March. The percentage reporting mills holding the line on HR has declined to 27 percent.
