Steel Mill Negotiations: Pendulum Swinging the Other Way

The pendulum has passed bottom and finally begun to swing the other way in price negotiations. Steel mills no longer hold a dominant bargaining position over spot buyers. That shift is consistent with the shortening lead times and declining prices reported by Steel Market Update.

SMU asks buyers every two weeks whether mills are willing to talk price on spot orders. Majorities of the service center and manufacturing executives responding to SMU’s survey this week reported mills now willing to offer deals on most products, with the possible exception of Galvalume and plate. About 82% of hot rolled buyers, 71% of galvanized buyers and 58% of cold rolled buyers said mills are now open to negotiating to land an order.