Steel Mill Negotiations: No Reason to Bargain

In a market where supplies of various products are so tight that some buyers say they would be willing to pay almost any price just to get material, there is very little negotiation going on between the mills and their spot market customers. The mills have no reason to bargain when demand is so far outpacing supply and they can easily sell all that they make.

Nearly all (97 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 3 percent said the mills are willing to bargain to secure an HR order. That compares to 14 percent who were still open to price talks at this time last month.