SMU Data and Models
Steel Mill Lead Times Weaker than Last Year
Written by John Packard
August 20, 2015
Lead times for hot rolled, cold rolled, galvanized and Galvalume steels continue to remain moderately short at most of the domestic steel mills according to the results of this week’s flat rolled steel market analysis.
Hot rolled lead times averaged 3.38 weeks which is essentially unchanged over the past month and below the 4 week average we were reporting in mid-June and early July. Last year at this time HRC lead times averaged 4.30 weeks, a full week longer than what we are seeing today.
Cold rolled lead times averaged 5.48 weeks, again essentially unchanged from the 5.65 weeks from the beginning of the month. CRC lead times have been basically flat going all the way back to May. One year ago lead times were one week longer at 6.38 weeks.
The story on galvanized is similar to that of cold rolled. Lead times averaged 5.58 weeks or down slightly from the 6.0 weeks reported at the beginning of August. Last year lead times were extended by one more week to 6.58 weeks.
Galvalume bucked the trend with our average being slightly longer at 6.50 weeks than the 6.14 weeks reported at the beginning of August. Galvalume lead times are close to what was reported one year ago (6.75 weeks).
To see an interactive history of our Steel Mill Lead Time data, visit our website here.
add pic
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.