SMU Data and Models
Lead Times Holding Their Own / Negotiations Not So Much
Written by John Packard
February 6, 2014
Based on the results of our steel market survey which we just completed this afternoon, lead times out of the domestic mills remained relatively constant compared to what we reported during the middle of January.
Hot rolled lead times slipped to 3.89 weeks (average) down from 4.09 weeks.
Cold rolled remained over 6 weeks at 6.32 weeks.
Galvanized also remained almost exactly the same at 6 weeks (6.18 weeks).
Galvalume also remained the same at 6.71 weeks.
Our respondents reported three of the four flat rolled products we are currently following, the percentage of the respondents reporting the domestic mills as willing to negotiate pricing on hot rolled, cold rolled and Galvanized increased compared to two weeks ago. The only item which showed less willingness to negotiate was Galvalume which dropped from 44 percent to 33 percent.
John Packard
Read more from John PackardLatest in SMU Data and Models
Steelmaking raw material costs mixed through May
According to our latest analysis, prices for four of the seven steelmaking raw materials we track increased from April to May. However, select materials saw a collective 1% decline month over month and are down 4% compared to three months ago.
SMU Survey: Buyers’ Sentiment tumbles as caution increases
SMU’s Buyers’ Sentiment Indices resumed their downward trend this week, erasing the modest recovery seen two weeks ago.
Service centers: Mill orders down further in April
SMU’s Mill Order Index (MOI) declined for a second straight month in April after repeated gains at the start of the year, according to our latest service center inventories data.
SMU Survey: Mill lead times edge lower
Sheet and plate lead times declined across the board this week, according to buyers responding to the latest SMU market survey. While our lead time ranges were unchanged compared to mid-April levels, average production times for each steel product we measure have declined from they were two weeks ago.
SMU Survey: Most buyers say price negotiations back on the table
Domestic mills are largely negotiable on spot prices, according to the majority of steel buyers responding to our latest market survey.