SMU Data and Models
Steel Mill Lead Times Almost One Week Shorter Than Last Year
Written by John Packard
January 8, 2015
Domestic steel mill lead times continue to slide (shrink) on all flat rolled products with the exception of Galvalume.
Based on the results of this weeks flat rolled steel market analysis, hot rolled lead times averaged 3.19 weeks, down one half a week compared to the beginning of December and one week shorter than what we saw the first week of January 2014.
Cold rolled also saw their average lead time shrink from 5.68 weeks at the beginning of December to 5.15 weeks as of this week. Like hot rolled above, cold rolled lead times are now one week less than what was measured one year ago (6.25 weeks).
Galvanized lead times average 5.50 weeks, according to our survey respondents, down from 5.97 weeks at the beginning of December. One year ago galvanized lead times averaged 6.25 weeks or three quarters of a week further out than today.
Galvalume lead times held steady at 6.18 weeks. At the beginning of December the AZ lead times were measured at 6.20 weeks. However, much like the other flat rolled products, when compared to last year lead times are almost three quarters of a week shorter this year than last (6.75 weeks).
Steel Market Update expectation is for continued pricing pressure until the supply/demand basics reverse themselves causing lead times to extend from here.
John Packard
Read more from John PackardLatest in SMU Data and Models
SMU’s April at a glance
SMU’s Monthly Review provides a summary of our key steel market metrics for the previous month, with the latest data updated through April 30.
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.