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 market survey results now available
The latest SMU 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.” Historical survey results are also available under that selection. If you need help accessing the survey results, or if […]
SMU survey: Buyers’ Sentiment finishes April on the upswing
SMU’s Steel Buyers’ Sentiment Indices both rose this week to reach some of the highest levels seen this year.
SMU survey: HR, plate lead times slip as CR extends
Hot-rolled coil and plate lead times contracted this week, with most other products remaining flat, according to SMU's most recent survey data. Cold-rolled products, however, saw lead times extend 0.1 weeks to an average of 7.5 weeks vs. two weeks earlier. Hot rolled and plate lead times both contracted 0.3 weeks from our last market check.
SMU survey: Sheet buyers find mills more willing to negotiate spot prices
Sheet steel buyers said mills are more willing to talk price on spot orders, according to our most recent survey data.
Steelmaking raw material prices mixed in April
Prices of steelmaking raw materials have moved in different directions over the last 30 days, according to Steel Market Update’s latest analysis.