SMU Data and Models
Mill Lead Times & Negotiations: Price Announcements Have Impact?
Written by John Packard
October 3, 2013
Based on our survey results, hot rolled and cold rolled lead times barely moved compared to two weeks ago. Galvanized lead times shrunk slightly from 6.00 weeks to 5.84 and Galvalume lead times dropped from 6.80 weeks to 6.33 weeks. The current lead times are longer than they were one year ago on all products with the exception of Galvalume. When compared to the beginning of July mill lead times are down on all items with the exception of Galvalume. As you can see by the graphic below, mill lead times have been on a downward trajectory since the middle of July but are above the lead times posted at the beginning of this calendar year until mid-June when they began to rapidly rise.
With the price increase announcements being made beginning on Monday of this week we saw the percentage of domestic mills willing to negotiate drop on all products except Galvalume. Hot rolled dropped 20 percent, cold rolled dropped 23 percent, galvanized dropped 23 percent while Galvalume rose by 2 percent.
John Packard
Read more from John PackardLatest in SMU Data and Models
SMU Survey: Sheet lead times ease further, plate hits one-year high
Steel buyers responding to this week’s SMU market survey report a continued softening in sheet lead times. Meanwhile, plate lead times have moderately extended and are at a one-year high.
SMU Survey: Buyers report more price flexibility from mills
Nearly half of the steel buyers responding to this week’s SMU market survey say domestic mills are showing increased willingness to negotiate pricing on new spot orders. This marks a significant shift from the firmer stance mills held in prior weeks.
SMU Survey: Buyers’ Sentiment Indices fall
Current Sentiment Index dropped six points to +42 this week compared to two weeks earlier. It has fallen in every successive survey since reaching a 2025 high of +66 on Feb. 19.
March service center shipments and inventories report
Steel service center shipments and inventories report through March 2024.
Apparent steel supply contracts in February
The amount of finished steel that entered the US market in February receded from January’s peak, according to our analysis of Department of Commerce and American Iron and Steel Institute (AISI) data.