Storms Have Not Affected Lead Times…Yet

Flat rolled lead times, the amount of time it takes for the steel mills to produce an order if placed today, have shortened ever so slightly in the past month, according to data collected by Steel Market Update (SMU) from manufacturers and steel service centers earlier this week. Viewed over a longer time frame, lead times have remained essentially flat for the past few months.

Steel mill lead times are one of the keys used when determining whether flat rolled steel prices should/will gain strength or weaken over time. AK Steel announced a new $30 per ton price increase last week, but so far the other mills have not followed. The flat lead times we are measuring may be one of the reasons why other mills are being cautious before making their announcements.