SMU Data and Models

Lead Times and Flat Rolled Steel Pricing (2013)
Written by John Packard
January 7, 2014
One of our readers asked us last week if we had ever done an analysis of steel prices and lead times. The answer (now) is yes, we have…
So the question we posed to ourselves – is there are relationship between mill lead times (as captured in our SMU steel market survey) and flat rolled steel prices. We used our benchmark hot rolled average pricing for calendar year 2013 (blue line) and lead times in weeks (green line) as reported in our twice monthly steel survey.
When looking at the data you need to remember that lead times are for orders being entered for future production (we do not segregate spot from contract) and hot rolled pricing is based on spot orders being placed for future production. We will let you decide if there is a correlation….

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.