SMU Data and Models
Steel Mill Lead Times Flat Based on SMU Survey
Written by John Packard
May 4, 2017
Flat rolled steel lead times are running essentially flat (same as what we have been reporting over the past few weeks) based on the responses we received from manufacturing companies and service centers this week.
Lead time is the amount of time it takes a domestic steel mill to produce a new order if placed today. Lead times are referenced in the number of weeks required and the numbers referenced in this report are the average lead time from all of the responses received in our flat rolled steel market trends analysis conducted this week.
Hot rolled lead times are averaging close to 4.5 weeks (4.37) slightly less than the almost 5 weeks reported in mid-March and early April of this year and significantly shorter than the 5.39 weeks registered at this point last year.
Cold rolled lead times average close to 6.5 weeks (6.46) or about the same as what was reported just a few weeks ago. One year ago, CRC lead times were closer to 8 weeks (7.88).
Galvanized lead times are averaging close to 7 weeks (6.82) which is where we have been over the past four surveys. One year ago, GI lead times averaged 8.47 weeks.
Galvalume lead times averaged close to 7 weeks (6.89) according to those responding to our inquiries. This is close to where we have been over the past couple of months and not too far from the 7.22 weeks reported last May.
A side note: The data for both lead times and negotiations comes from only service center and manufacturer respondents. We do not include commentary from the steel mills, trading companies, or toll processors in this particular group of questions.
To see an interactive history of our Steel Mill Negotiations data, visit our website here.
John Packard
Read more from John PackardLatest in SMU Data and Models
SMU Market Survey Results Now Available
The latest SMU Market Survey results are now available on our website to all Premium members.
UAW Strike Hasn’t Dampened SMU Buyers Sentiment Indices
SMU's Current and Future Steel Buyers Sentiment Indices both increased this week despite the United Auto Workers (UAW) union strike expansion, based on our most recent survey data.
Sheet Lead Times Mixed, Plate Plummets
While lead times for sheet again had mixed movements this week, those for plate collapsed, according to SMU’s most recent market survey.
US Hot Band Now Even Cheaper Than Imported HRC
US hot-rolled coil (HRC) prices fell further relative to imported product this week. Domestic hot band remains cheaper than offshore HRC as US tags continue to sink at a sharper rate than those overseas.
Service Center Shipments and Inventories Report for August
Flat Rolled = 54.1 Shipping Days of Supply Plate = 61.2 Shipping Days of Supply Flat Rolled US service center flat-rolled steel inventories eased back in August with stronger shipments. At the end of August, service centers carried 54.1 shipping days of supply, according to adjusted SMU data, down from 56.1 shipping days of supply […]