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 August at a glance
SMU’s Monthly Review provides a summary of important steel market metrics for the previous month. Our August report includes data updated through August 30th.
SMU market survey results now available
SMU’s latest steel buyers market survey results are now available on our website to all premium members. After logging in at steelmarketupdate.com, visit the pricing and analysis tab and look under the “survey results” section for “latest survey results.”
SMU survey: Lead times edge higher for sheet
Current steel mill lead time averages are a few days longer than levels seen one month prior, but remain near historical lows for both sheet and plate products.
SMU survey: Steel Buyers’ Sentiment Indices surge
Both our Current and Future Indices are now up to multi-month highs, indicating continued optimism among steel buyers.
SMU survey: Mills’ flexibility on prices up slightly
Steel buyers found mills slightly more willing to negotiate spot prices this week, according to our most recent survey data. Though this negotiation rate has ticked up vs. our previous market check, overall rates have been trending downward since July’s highs.