SMU Data and Models

Steel Mill Lead Times: SMU Survey Has Them Shrinking
Written by John Packard
December 18, 2014
Lead times at the domestic steel mills continue to be shorter than what we saw this time last year (when prices were rising). The average lead time for benchmark hot rolled coil dropped to an average of 3.53 weeks based on the results from this week’s SMU flat rolled steel market survey. As you can see by the table below the 3.53 weeks is 0.7 weeks shorter than mid-December 2013.
Cold rolled lead times are also shorter than last year at 5.50 weeks vs. 6.04 weeks. Galvanized lead times slipped below 6.0 weeks and now average 5.78 weeks. This is less extended than the 6.51 weeks reported in mid-December 2013. Galvalume lead times also shrunk dropping 0.75 weeks just since the beginning of December 2014. Galvalume is now more than 1 week easier to get in 2014 than what we saw in mid-December 2013.
Below is an interactive graphic of our Steel Mill Lead Time History, but it can only be seen when you are logged into the website and reading the newsletter online. If you need any assistance logging in or navigating the website, contact us at info@SteelMarketUpdate.com or 800-432-3475.
{amchart id=”112″ SMU Lead Times by Product- Survey}

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.