SMU Data and Models
Steel Mill Lead Times: Still Slightly Shorter
Written by Tim Triplett
October 10, 2019
Mill lead times for all flat rolled sheet products continued to see slight shortening over the past month. The average lead time for hot rolled is now down to nearly three and a half weeks, cold rolled is less than five and a half weeks and coated steels are less than six and a half weeks. Plate lead times remain around four weeks, according to data gathered this week by Steel Market Update.
Lead times for steel delivery are a measure of demand at the mill level. The shorter the lead time, the less busy the mills, and the more likely they are to discount prices.
Hot rolled lead times now average 3.67 weeks, shortened from 3.97 weeks at this time last month. The average cold rolled lead time has dipped to 5.44 weeks from 5.65 weeks in early September. The average lead time for galvanized has shortened to 6.33 from 6.57 weeks, while the lead time for spot orders of Galvalume is down to 6.30 weeks. Lead times for spot orders of plate steel have also declined to an average of 4.10 weeks. All lead times are shorter than they were at this time last year.
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
SMU’s September at a glance
SMU’s monthly review provides a summary of important steel market metrics for the previous month. This latest report includes data updated through Sept. 30.
SMU 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 Indices remain optimistic
SMU’s Steel Buyers’ Sentiment Indices remain in positive territory and continue to indicate optimism amongst steel buyers.
SMU survey: More buyers report mills willing to talk price
Over three quarters of the steel buyers participating in our market survey this week reported that mills are negotiable on new order prices
SMU survey: Steel mill lead times remain short
We saw a slight upward movement in some products compared to early September, but nothing substantial enough to signal a shift in the market.