SMU Data and Models

Steel Mill Lead Times Better Than This Time Last Year
Written by John Packard
September 21, 2014
Based on the results from our most recent Steel Market Update steel market analysis, flat rolled steel mill lead times, the number of weeks needed to produce and ship a new order, remained above 2013 levels on all products.
SMU conducted one of our twice monthly steel market surveys this past week. During the process we asked those responding to our online invitation to participate where they were seeing lead times for new orders placed with the domestic steel mills.
The participants, which are all either manufacturing companies or flat rolled steel service centers reported hot rolled lead times as remaining above 4 weeks (as an average) where they have been for most of this year. Last year at this time they were reported to average 3.97 weeks.
Cold rolled lead times averaged 6.58 weeks based on this week’s survey results which is approximately one half week longer than one year ago. Galvanized was in a similar situation with it hovering around the 6.50 week mark for four of the last five survey periods while last year it was measured at 6.00 weeks.
Galvalume lead times increased to 7.00 weeks which is close to the 6.80 weeks reported last year at this time.
The consistency of lead times has been one of the factors which has held prices relatively stable during calendar year 2014.
An interactive graphic can be seen below when you are reading the newsletter online. If you have not logged into the website in the past and need your username and password, contact us at: info@SteelMarketUpdate.com or by calling 800-432-3475. If you need help navigating the website we would also be very happy to assist you.
{amchart id=”112″ SMU Lead Times by Product- Survey}

John Packard
Read more from John PackardLatest in SMU Data and Models

SMU Survey: Steel Buyers’ Sentiment Indices recover
SMU’s Buyers’ Sentiment Indices both improved this week, reversing the decline seen two weeks ago.

SMU Survey: Sheet and plate lead times flatten out
Sheet and plate lead times held steady this week, according to buyers responding to the latest SMU market survey. This week we saw little change from mid-April levels, with just one product (Galvalume) showing any significant movement.

SMU Survey: More mills willing to deal on sheet prices, less so on plate
Nearly two thirds of the steel buyers who responded to this week’s SMU survey say domestic mills are negotiable on spot prices. This increasing flexibility marks a significant shift from the firmer stance mills held in recent months.

SMU Survey: Sheet lead times ease further, plate hits one-year high
Steel buyers responding to this week’s SMU market survey report a continued softening in sheet lead times. Meanwhile, plate lead times have moderately extended and are at a one-year high.

SMU Survey: Buyers report more price flexibility from mills
Nearly half of the steel buyers responding to this week’s SMU market survey say domestic mills are showing increased willingness to negotiate pricing on new spot orders. This marks a significant shift from the firmer stance mills held in prior weeks.