SMU Data and Models
June 25, 2020
Steel Mill Negotiations: Buyers Bargaining
Written by Tim Triplett
Steel demand is slowly improving as the economy moves on from the coronavirus shutdowns, but the environment remains very competitive, and buyers report that most mills are willing to negotiate on price to win orders of flat rolled steel.
Steel prices have moved up erratically since hot rolled bottomed at $460 per ton in late April. Flat rolled steel prices hit $515 per ton last week but declined this week as supplies continue to exceed orders even with the increasing demand. The benchmark price for hot rolled dipped below the $500 per ton mark for the first time since the third week of May to $490, according to Steel Market Update’s canvass of the market this week. The average price for cold rolled moved down to $665 a ton, while galvanized declined to $660 per ton.
