Steel Mill Negotiations: Tighter, But Price Still in Play

Negotiations between producers and buyers of flat rolled steel have tightened somewhat following the price increase announcements by the mills earlier this month. Steel Market Update’s canvass of the market this week shows that mills are slightly less likely to negotiate on price than they were in April when competitors were scrambling to win orders in a market newly disrupted by the coronavirus.

Mills are holding firm in some negotiations in pursuit of price increases announced in the week ending May 1 ranging from $50 to $60 per ton. Other mills announced minimum base prices of $500-520 per ton for hot rolled and $700-720 per ton for cold rolled and coated products. Steel Market Update puts the current price for hot rolled at $470 per ton and cold rolled and coated at $675 per ton as the price hikes have not yet reached levels suggested in the mill announcements.