SMU Data and Models
Steel Mill Lead Times: Still Extended
Written by Tim Triplett
February 25, 2018
Mill lead times on flat rolled steel orders continue to stretch as buyers replenish inventories in the first quarter. One of the key indicators tracked by Steel Market Update, lead times reflect the activity at the mills and the order levels they are seeing from their customers. About 9 percent of respondents to this week’s SMU market trends questionnaire report that lead times are highly extended, while an additional 69 percent call them slightly longer than usual. Another 23 percent consider lead times normal for this time of year. None consider them shorter. SMU’s latest data indicates that the average lead time for hot rolled remains around five weeks and cold rolled about seven weeks, while galvanized and Galvalume lead times have extended to a bit over seven weeks.
Hot rolled lead times now average 4.95 weeks, up from 4.50 weeks a month ago. Hot rolled lead times have extended by almost two weeks since steel prices began their rise in October.
Cold-rolled lead times now average 7.09 weeks, up from 6.74 weeks a month ago. Cold rolled lead times have not been this long since mid-January last year.
Galvanized lead times have moved up to 7.20 weeks from 6.79 weeks a month ago. Buyers have not had to wait this long for galvanized orders since April 2017.
The lead time for Galvalume is now 7.33 weeks, up from 6.67 weeks at this time last month.
Note: These lead times are based on the average from manufacturers 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
Survey says: Market hit with another blast of tariff whiplash
If you’re feeling a sudden jerk and a case of tariff whiplash coming on, you’re not alone.
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: Steel Buyers’ Sentiment sinks to near pandemic levels
SMU’s Steel Buyers’ Sentiment Indices moved in opposing directions this week. Our Current Steel Buyers’ Sentiment Index sharply fell to one of the lowest levels recorded in five years, while Future Buyers’ Sentiment marginally improved.
SMU Survey: Mill lead times tick higher after late-May lows
All five of the averages for sheet and plate mill lead times tracked by SMU extended moderately this week, according to buyers responding to our latest market survey.
SMU Survey: Mills less negotiable on sheet prices, buyers say
Most steel buyers responding to our market survey this week reported that domestic mills are considerably less willing to talk price on sheet products than they were in recent weeks, but remain open to bargain on plate prices.