Steel Mills Less Willing To Negotiate Lower Prices

A significant percentage of steel buyers continue to report that mills willing to negotiate lower prices on new order prices. But that rate has been declining since early November, according to Steel Market Update’s recent market checks. Mills’ willingness to negotiate lower prices for sheet products is at its lowest point since late April, when tags were still elevated because of the shock of war in Ukraine. Negotiation rates on plate products remain slightly higher than sheet products.

Every two weeks, SMU asks hundreds of steel buyers: Are you finding domestic mills willing to negotiate spot pricing on new orders? On average, 67% of steel buyers polled this week reported that mills were willing to talk price on new orders. This is down from an average rate of 73% two weeks ago and down from a rate of 85% one month prior. Six weeks ago, we saw an average negotiation rate of 91%, a ten-month high. As shown in Figure 1, negotiation rates continue to remain relatively high and have been so for nearly eight months.