Final Thoughts
November 9, 2020
Final Thoughts
Written by John Packard
I am hearing negotiations on 2021 flat rolled contracts are quite contentious. OEM buyers are telling me the domestic mills are so aggressive with their pricing offers that buyers are having to look for alternative suppliers. As one manufacturing buyer put it to me yesterday, “[The steel mills are] effectively asking us to review other sourcing options.”
This OEM told me they were being pushed to move more tons into spot purchases if their contracts could not get done. “I’m not used to a combative relationship. The darn mills are taking an odd stance. They have captive mill business, and they are telling us to take it or leave it.” He went on to say, “There are other domestic places [to purchase their steel],” and added, “The mills never learn their lesson.”
