SMU Data and Models
January 6, 2022
Steel Mill Negotiations: Buyers Gain the Upper Hand in the New Year
Written by Tim Triplett
After a year in which steel mills could basically name their price, 2022 is shaping up to be a buyer’s market – at least for the foreseeable future. Nearly all (96%) of the service center and manufacturing executives responding to Steel Market Update’s survey this week reported that the mills are willing to negotiate prices to secure orders of hot rolled steel.
Likewise, the vast majority of galvanized buyers (84%) and cold rolled buyers (71%) now say deals are highly negotiable in an environment in which steel prices are declining amid widespread inventory destocking and seasonal softness in demand.
