Sheet Mills Less Willing to Negotiate: SMU Survey

The percentage of buyers reporting that mills’ prices are negotiable contracted this week, following more than two consecutive months of rising negotiation rates. Four out of five steel executives polled this week reported that mills are willing to talk price to secure an order. According to our steel market surveys, a high willingness to negotiate has been evident in each of our checks since early May.

SMU polls hundreds of steel buyers every other week with the question: Are you finding domestic mills are willing to negotiate spot pricing on new orders? On average this week, 77% of steel buyers reported that mills were willing to negotiate lower prices on new orders, down compared to the 88–89% rates seen since early July. Recall we saw negotiation rates as low as 16% in March.