SMU Data and Models
July 23, 2020
Steel Mill Negotiations: Buyers Have Upper Hand
Written by Tim Triplett
Steel buyers clearly have the upper hand in negotiations with steel makers given the challenging market conditions from the virus, with overwhelming percentages of those responding to Steel Market Update’s questionnaire this week reporting that the mills are open to price negotiations to win orders.
Nearly all the hot rolled buyers (96 percent) said the mills are open to price talks, while just 4 percent said the mills are standing firm on HR prices. That’s up 10 points from just two weeks.
