SMU Data and Models
Mill Lead Times & Mill Negotiations: Still Tight (signs of loosening?)
Written by John Packard
December 19, 2013
Lead times continue to be longer than normal with hot rolled averaging more than 4 weeks (4.23 weeks), cold rolled exceeding 6 weeks (6.04 weeks), galvanized at 6.51 weeks and Galvalume averaging 6.83 weeks. All of the flat rolled steel lead times measured this week are extended compared to last year during the middle of December. Our survey respondents are reporting galvanized as having the biggest change compared to last year having added a full week to its average.
As we approach the end of the year we are capturing some movement in hot rolled as our survey respondents reported the domestic mills as being more willing to negotiate HRC than they were just two weeks ago (56 percent vs. 41 percent). All of the other items had increases in negotiations but the continued to be relatively modest adjustments.
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.