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 Scrap Survey: Current and Future Sentiment tick down
SMU’s Current Sentiment Index for scrap decreased this month, a move mirrored by our Future Sentiment Index, according to the latest data from our ferrous scrap survey.
SMU Survey: Buyers’ Sentiment slips again, future outlook improves
Each of our Sentiment Indices continues to reflect that steel buyers are positive about their present and future business prospects, though that confidence has eased considerably compared to the beginning of the year.
SMU scrap market survey results now available
SMU’s October ferrous scrap market survey results are now available on our website to all premium members.
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: Sheet and plate lead times stabilize
Sheet and plate lead times saw minor shifts this week, according to SMU’s latest market survey. Sheet times have inched up over the last month but remain within days of multi-year lows, as they have since May. Plate lead times have bobbed within a tight range for months, hovering roughly a week longer than this time last year.