SMU Data and Models
SMU Survey: Mill Lead Times & Mill Negotiations
Written by John Packard
November 21, 2013
Lead times shrunk on three of the four flat rolled products followed by Steel Market Update. We saw hot rolled lead times fall back to 4.0 weeks from 4.36 weeks reported at the beginning of November.
We also saw cold rolled lead times retreat to 6.0 weeks from 6.39 weeks and Galvalume shrunk to 6.22 weeks from 6.77 weeks. Galvanized lead times move out slightly to 6.46 weeks from 6.39 weeks.
Lead times are based on the responses gathered during our flat rolled steel market analysis which we conduct twice per month.
As lead times pulled back we saw a slight increase in the percentages of our respondents reporting the domestic mills as willing to negotiate pricing. Even with the increase the mills appear to be only mildly interested in negotiations with cold rolled and Galvalume being the two tightest products (least willing to negotiate) and hot rolled and galvanized being the most aggressive (most willing to negotiate).
John Packard
Read more from John PackardLatest in SMU Data and Models
SMU Steel Demand Index still lags
The Steel Demand Index now stands at 42, up from 38.5 in early July, but off from a four-year high of 65.0 in late February.
SMU Price Ranges: Sheet prices tick lower, but floor remains high vs. ’24
Sheet prices slipped again this week amid discounting from certain mills and ongoing concerns about demand.
SMU Survey: Steel Buyer Sentiment Indices soften
SMU’s Steel Buyers’ Sentiment Indices eased this week, both approaching multi-year lows.
SMU flat-rolled market survey results now available
SMU’s latest steel buyers market survey results are now available on our website to all premium members.
SMU Survey: Mill lead times remain short
Steel mill lead times on sheet products contracted across the board this week compared to early July, while plate production times moderately extended, according to steel buyers responding to this week’s market survey.