SMU Data and Models
June 22, 2017
Steel Mill Lead Times Inching Up?
Written by Tim Triplett
Steel mill flat rolled lead times, which have generally trended downward this spring, my be showing early signs of lengthening, reflecting new strength in demand for domestic steel products. Mills were successful in collecting a price increase earlier in the month. Despite SMU data that shows service center inventories at “comfortable” levels, some distributors may be shifting purchases to domestic suppliers, buying ahead of a Section 232 ruling that could further restrict steel imports into the United States on national security grounds. SMU will continue to watch this carefully in the days and weeks ahead.
Hot rolled lead times currently average around 4.50 weeks, up from up from 3.88 weeks at the beginning of June and 4.26 weeks a month ago. One year ago, HRC lead times were 5.00 weeks.
