SMU Data and Models
February 18, 2021
Steel Mill Negotiations: Buyers Still at the Mercy of the Mills
Written by Tim Triplett
Steel Market Update data shows no significant change in the negotiating position of steel buyers, who remain largely at the mercy of the mills. More than nine out of 10 buyers responding to SMU’s questionnaire this week reported the mills unwilling to discuss price concessions—which has been the mills’ attitude for the past five months.
Steelmakers continue to enjoy the dominant negotiating position because of market conditions characterized by strong demand and limited supplies. In competition for needed materials, buyers have bid up steel prices to record heights. SMU’s latest check of the market puts the average hot-rolled coil price at $1,200 per ton ($60/cwt).
