SMU Data and Models
December 22, 2020
Steel Mill Negotiations: Price's Up, Bargaining's Down
Written by Tim Triplett
Based on Steel Market Update’s check of the market this week, hot rolled steel prices are nearing $1,000 per ton, within sight of a record high. With service centers and OEMs willing to pay such high prices in order to secure inventory in a tight market, it’s no surprise the buyers report little willingness among the mills to negotiate any discounts.
Data from Steel Market Update’s market trends questionnaire this week shows only minor changes in the past month. Virtually all the steel buyers responding this week said the mills are unwilling to deal on hot rolled and 95 percent said the mills would not negotiate on cold rolled.
