SMU Data and Models
January 7, 2021
Steel Mill Negotiations: “They Can Charge Whatever They Want”
Written by Tim Triplett
With steel in such tight supply as 2021 gets off to a fast start, it’s clearly a seller’s market, with little to no price negotiation between buyers and the mills.
Based on Steel Market Update’s check of the market this week, average hot rolled steel prices have surpassed $1,000 per ton. SMU has received anecdotal reports of service centers and OEMs paying nearly $1,200 per ton to secure critically needed hot rolled. Similar premiums have been reported for most other flat rolled products as well.
