SMU Data and Models
Steel Mill Lead Times: Sharp Declines in April
Written by Tim Triplett
April 30, 2020
Lead times for spot orders of flat rolled and plate steels declined sharply in April. Lead times ranged from a half-week to a full week shorter at the end of the month than they did at the beginning, depending on the product, according to Steel Market Update’s latest market trends questionnaire.
Lead times for steel delivery are a measure of demand at the mill level—the shorter the lead time, the less busy the mill. Lead times have continued to shorten despite the mills’ best efforts to idle furnaces and curtail production to sync supply with the demand that has survived the coronavirus shutdowns.
Hot rolled lead times now average 3.25 weeks, down from 3.81 at the beginning of April. Cold rolled orders currently have a lead time of 5.04 weeks, down from 5.77 four weeks ago. The current lead time for galvanized steel is 5.34 weeks, down from 6.39, while Galvalume is at 5.67 weeks, down from 6.43 in SMU’s early April check of the market.
Auto plants and other manufacturing facilities are expected to begin reopening in May, which could give a boost to steel demand and stabilize mill 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 price ranges: Plate flat as sheet inches higher
SMU’s steel price indices were steady to higher this week. Each of our sheet indices crept upwards from last week, while our plate index was unchanged.
SMU Steel Demand Index suggests further demand contraction
Steel Market Update’s Steel Demand Index ticked back seven points last week, falling further into contraction territory.
August service center shipments and inventories report
Flat rolled = 66.3 shipping days of supply Plate = 57.0 shipping days of supply Flat rolled Flat-rolled steel supply at US service centers grew further in August. The dynamic resulted from some Q3 restocking efforts at a perceived market bottom, met with shorter lead times and weaker demand. At the end of August, service […]
SMU market survey results now available
SMU’s latest steel buyers market survey results are now available on our website to all premium members.
SMU survey: Steel Buyers’ Sentiment Indices decline again
Following significant recoveries in late August, SMU’s Steel Buyers’ Sentiment Indices tumbled this week.