SMU Data and Models
Lead Times Hold Steady
Written by Tim Triplett
August 3, 2017
Flat rolled lead times have seen little change in the past month.
Twice per month, Steel Market Update conducts an analysis of the flat rolled sheet and plate markets based on responses to a comprehensive questionnaire. When looking at lead times, the analysis is restricted to responses from manufacturers and distributors, who accounted for 84 percent of the total return. Steel mills, trading companies and toll processors are not invited to participate in lead time questions.
Hot rolled lead times continue to be in the low to mid four-week time frame (4.46 weeks). This is slightly longer than what we saw one year ago when lead times were reported to be averaging 3.80 weeks.
Cold rolled lead times are approximately six weeks (6.25 weeks), which has not changed much in the past two months. Last year, the average lead time for cold roll was slightly higher at 6.71 weeks.
Likewise, galvanized lead times have stayed in the mid six-week range (6.54) with only small variation in the past two months. This time last year, galvanized lead times averaged 7.08 weeks.
Galvalume lead times averaged 6.75 weeks in the most recent survey, up from 6.30 weeks a month ago, but down from 7.25 weeks last year.
Note: These lead times are based on the average from manufacturing and steel service centers who participated in this week’s SMU market trends analysis. Our lead times do not predict what any individual may get from any specific mill supplier. Look to your mill rep for actual lead times. Our lead times are meant only to identify trends and changes in the marketplace. To see an interactive history of our Steel Mill Lead Times data, visit our website here.
Tim Triplett
Read more from Tim TriplettLatest 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.