Steel Mill Negotiations: In Buyers' Favor

After a brief period in which the mills tried to hold the line following their price increase announcements in May, negotiations have swung once again in buyers’ favor. Seven out of 10 buyers responding to Steel Market Update’s questionnaire this week said the mills are willing to negotiate on price to win orders of hot rolled steel, as well as other products.

Steel prices have moved up in small increments since bottoming around $460 per ton in late April. SMU reports the benchmark price for hot rolled this week at $515 per ton. But the mills’ apparent willingness to discount in light of the uncertain demand due to the coronavirus casts doubt on their ability to collect further increases.