SMU Data and Models
Steel Mill Lead Times Have Turned the Corner
Written by John Packard
May 21, 2015
According to the results of the Steel Market Update most recent flat rolled steel survey, domestic steel mill lead times are beginning to extend reflecting the improvement in the mills’ order books. We are, however, still far away from the lead times that we saw in the middle of May 2014.
Hot rolled lead times are now closer to 4 weeks (as an average) than the 3 weeks we reported in April of this year. One year ago HRC lead times were at 5 weeks.
Cold rolled lead times are now averaging 5.67 weeks, up slightly from the 5 weeks being reported in April but well below the 7 weeks of one year ago.
Galvanized lead times are now at 6 weeks, up from just over 5 weeks in April but below the 7 week average we reported one year ago.
Galvalume lead times are now at a 6 week average based on our respondents. This is up slightly from the 5.5 to 5.75 weeks we reported in April and below the 6.67 weeks we saw one year ago.
Again, lead times have improved but we should not consider the extension as significant enough to push buyers into the spot markets out of fear of running out of steel.
To view the interactive history of the graphic above, visit the Steel Mill Lead Times page on the Steel Market Update website here.
John Packard
Read more from John PackardLatest in SMU Data and Models
SMU Survey: Current Sentiment tumbles on tariffs, uncertainty, soft demand
SMU’s Steel Buyers’ Sentiment Indices moved in opposing directions this week. Our Current Steel Buyers’ Sentiment Index dropped to one of the lowest levels recorded in over five years, while Future Buyers’ Sentiment inched higher.
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. After logging in at steelmarketupdate.com, visit the pricing and analysis tab and look under the “survey results” section for “latest survey results.” Past survey results are also available under that selection. If you need help accessing the survey results, or if […]
SMU Survey: Buyers report little change in sheet and plate lead times
Steel buyers report steady lead times for sheet and plate products, a soft-sideways trend we've seen since May.
SMU Survey: Mills remain flexible on pricing, buyers say
The majority of steel buyers responding to our market survey this week continue to say that mills are negotiable on new spot order prices. Negotiation rates have remained high since May.
Service centers: Mill orders improve in July
SMU’s Mill Order Index (MOI) moved higher in July after rebounding the month prior. The shift comes after mill orders declined from March through May.