Steel Mill Negotiations: No Surprise, It's a Buyer's Market

Price negotiations between steel mills and steel buyers are wide open, not surprisingly, as companies scramble to win orders in a market disrupted by the coronavirus. More than nine out of 10 buyers responding to Steel Market Update’s questionnaire this week said the mills are now talking price on all types of products.

In the hot rolled segment, 93 percent of the steel buyers said the mills are willing to negotiate prices on HR, up 30 points from 63 percent in early March. In the cold rolled segment, 96 percent reported the mills willing to talk price, up from 87 percent a month ago. In galvanized, 90 percent reported the mills open to negotiation, up more than 30 points from the 57 percent four weeks ago. Similarly, 82 percent said they have found mills willing to compromise on Galvalume prices.