Steel Mill Negotiations: Mills Still in Control

With one month of the new year in the record books, steel demand continues to outpace supplies, leaving the mills in a dominant negotiating position. Roughly nine out of 10 buyers responding to Steel Market Update’s questionnaire this week reported that their mill reps are unwilling to talk price on virtually all flat rolled and plate steel products.

Steel has been a seller’s market for nearly six months, dating all the way back to September based on SMU’s data, and there are no signs yet of that changing. “I believe we are 20-30 days away from mills beginning to negotiate,” commented one manufacturing executive.