SMU Data and Models
November 11, 2021
Steel Mill Negotiations: Momentum Shifting from Sellers to Buyers
Written by Tim Triplett
Buyers continue to gain leverage in steel price negotiations, especially for hot rolled products.
Steel Market Update asks buyers every two weeks whether mills are willing to talk price on spot orders. Nearly three out of four (72%) of the hot rolled buyers responding to this week’s poll said mills are now willing to negotiate HR prices to land an order. The percentage has not been that high since August 2020 and is a clear indication that the mills are no longer in a position to dictate hot rolled prices.
