Flat Rolled Steel Mill Lead Times Slipping

Steel Market Update (SMU) conducted our early December flat rolled steel market analysis this week. As part of the survey process, SMU asks those responding questions about flat rolled steel mill lead times. From their responses we create our average lead time for the industry by product. This allows us the ability to evaluate whether lead times are expanding or contracting which gives us an indication of the strength of the industry.

Lead times have been contracting over the past couple of months on hot rolled coil. Based on our survey results only, HRC appears to be the weakest of the four flat rolled products we analyze. Hot rolled lead times have gone from 4.2 weeks back in October to 3.59 weeks now (average). During the first week of December 2013 HR lead times were reported to be 4.56 weeks, one week longer than our current measurement.