SMU Data and Models
Steel Mill Lead Times Continue to Move Out
Written by John Packard
January 21, 2016
Based on the results of our flat rolled steel market analysis, all of the flat rolled lead times are averaging longer lead times than what we measured one year ago.
The SMU steel market questionnaire found the average lead time on hot rolled coil (HRC) was 3.91 weeks, up from a 3.63 week average reported at the beginning of January and well above the 2.81 weeks reported one year ago. Our respondents are reporting average lead times as being approximately one week further extended than what they were in November 2015.
Cold rolled lead times are averaging almost six weeks (5.85) according to our survey respondents. As with hot rolled, this is approximately one week longer than what we saw last January at this time and one week longer than what we reported in November 2015.
Galvanized lead times were reported to be averaging 6.5 weeks (6.45) which is almost 1.5 weeks longer than what was being reported in November 2015 and slightly more than a week longer than what we saw as the average in mid-January 2015.
Galvalume lead times, which had been relatively stable in recent weeks at about 6.3 weeks, moved out slightly to 6.63 weeks. Lead times now are about a half a week longer than what we saw in November and almost a week longer than what we reported in mid-January 2015.
To see an interactive history of our Steel Mill Lead Time data, visit our website here.
John Packard
Read more from John PackardLatest in SMU Data and Models
Steelmaking raw material prices ease in July
The majority of steelmaking raw material prices declined in June, following the same trend seen in May, according to SMU’s latest analysis.
SMU price ranges: HR declines moderate. Are we near a bottom?
SMU’s sheet price ranges slid again this week. But the declines were more pronounced on tandem products whereas prices for hot-rolled coil held roughly steady.
Some SMU Key Market Indicators improve, others remain near historic lows
SMU’s Key Market Indicators include data on the economy, raw materials, manufacturing, construction, and steel sheet and long products. They offer a snapshot of current sentiment and the near-term expected trajectory of the economy. All told, nine key indicators point lower, 16 are neutral, and 13 point higher. One thing worth noting: The nine indicators pointing lower are all lagging indicators. Many of those pointing upward are leading indicators.
SMU survey: Steel Buyers’ Sentiment Indices rebound
SMU’s Steel Buyers’ Sentiment Indices both saw improvement this week. Current sentiment ticked higher but remains near the four-year low seen earlier this month. Future Sentiment continues to indicate that buyers are optimistic for future business conditions.
SMU market survey results now available
The latest SMU 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.” Historical survey results are also available under that selection. If you need help accessing the survey results, or if your […]