SMU Data and Models
October 29, 2020
Steel Mill Negotiations: Mills Hold the Upper Hand
Written by Tim Triplett
Mills continue to hold the upper hand in negotiations over hot rolled, cold rolled and coated steel orders as they work to collect higher prices in a tight market with extended lead times. Buyers report the mills will only negotiate on big tonnages to be delivered in 2021.
About 86 percent of the steel buyers responding to Steel Market Update’s market trends questionnaire this week said the mills are unwilling to deal on hot rolled. Only 14 percent said the mills are now willing to bargain to secure an HR order. Those percentage are unchanged over the past two weeks.
