Mill Willingness to Negotiate Remains High

Steel buyers continue to hold the upper hand in price negotiations with mills — a position they have enjoyed for nearly six months. A very high percentage of sheet buyers continue to report that mills are willing to talk price to secure an order. Negotiations on plate products are not as common, with slightly more than half of buyers reporting they have bargaining power on new orders.

Steel Market Update asks hundreds of steel buyers every other week: Do you find domestic mills are willing to negotiate spot pricing on new orders? On average, 91% of steel buyers polled this week reported that mills were willing to negotiate lower prices on new orders. This is now the highest rate recorded since January. As shown in Figure 1, negotiation rates have remained relatively high for quite some time.