SMU Data and Models
October 1, 2020
Steel Mill Negotiations: Mills Still Holding the Line
Written by Tim Triplett
Mills continue to stand firm in price talks on hot rolled, cold rolled and coated steel orders as they seek to collect the $40-50 price increases they announced two weeks ago, report respondents to Steel Market Update’s market trends questionnaire. Based on SMU’s latest check of the market, the benchmark price for hot rolled steel now averages around $650 per ton. That’s up sharply from $440 a ton two months ago, but little changed over the past two weeks, suggesting that the uptrend in steel prices may be nearing a peak.
About 82 percent of the hot rolled steel buyers responding to SMU’s poll this week said the mills are not willing to deal on HR. That’s up five points from 77 percent two weeks ago, but down slightly from 87 percent at this time last month. Only 18 percent said the mills are now willing to bargain to secure an HR order.
