SMU Data and Models
Mill Lead Times Slip
Written by John Packard
June 5, 2014
According to the results of our latest flat rolled steel market survey just completed earlier today, mill lead times are slowly beginning to move in (get shorter) on almost all products followed by Steel Market Update.
Our respondents reported shorter lead times on hot rolled which were at 4.91 weeks on the 15th of May and are now being reported as averaging 4.52 weeks. However, the latest HRC lead times are still further extended than the 3.38 weeks reported at this time last year.
Cold rolled lead times are averaging 6.72 weeks down from 7.04 weeks in mid-May and one week less than the 7.84 weeks reported during the middle of April. Last year CRC lead times averaged 5.19 weeks.
Galvanized lead times moved from 7.14 weeks down to 6.86 weeks based on this week’s survey results. Last year galvanized coil lead times averaged 5.67 weeks or about one week less than where we are today.
Galvalume has been the least affected product with AZ lead times averaging 6.55 weeks down slightly from the 6.67 weeks reported during the middle of May. One year ago AZ average lead time was 6.10 weeks.
Shrinking lead times will many times point to a more robust negotiation process between the steel mills and their customers as prices begin to slip in order to fill holes in the steel mill order books. Here is what the recent history for steel mill lead times (based on SMU steel survey results):
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.