SMU Data and Models
Steel Mill Lead Times: Slightly Shorter
Written by Tim Triplett
February 20, 2020
Mill lead times for spot orders of flat rolled steel have shortened slightly this month, though not yet enough to signal a definite trend. The current numbers suggest the mills are still maintaining relatively healthy order levels, but a change may be in the works. Lead times for steel delivery are an indicator of demand at the mill level. The shorter the lead time, the less busy the mill, and the more likely they are to negotiate on price.
Comparing the data, the average lead time for spot orders of hot rolled this week was 4.61 weeks, down slightly from 4.80 weeks in early February. Cold rolled was at 6.55 weeks, versus 6.59 weeks two weeks prior. Galvanized was at 6.93 weeks, down slightly from 7.08, while Galvalume was at 7.45 weeks, up slightly from 7.22. The average plate lead time this week was 4.90 weeks, slightly shorter than the 5.00 weeks in the prior survey.
SMU’s canvass of the market this week showed steel prices moving sideways to down, which may help explain shortening lead times.
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 Survey: Current Sentiment tumbles on tariffs, uncertainty, soft demand
SMU’s Steel Buyers’ Sentiment Indices moved in opposing directions this week. Our Current Steel Buyers’ Sentiment Index dropped to one of the lowest levels recorded in over five years, while Future Buyers’ Sentiment inched higher.
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: Buyers report little change in sheet and plate lead times
Steel buyers report steady lead times for sheet and plate products, a soft-sideways trend we've seen since May.
SMU Survey: Mills remain flexible on pricing, buyers say
The majority of steel buyers responding to our market survey this week continue to say that mills are negotiable on new spot order prices. Negotiation rates have remained high since May.
Service centers: Mill orders improve in July
SMU’s Mill Order Index (MOI) moved higher in July after rebounding the month prior. The shift comes after mill orders declined from March through May.