Steel Mill Lead Times: Little Change

Mill lead times have seen little change in the past month, according to the latest data from Steel Market Update’s flat roll market questionnaire, despite the price hikes announced by the mills two weeks ago. One of the key indicators tracked by SMU, lead times reflect the activity at the mills and the order levels they are seeing from their customers. Had the market balked at the price hikes, with buyers pulling back on orders, one would have expected lead times to shorten. Therefore, the lack of change could be interpreted as a positive sign for demand.

Hot rolled lead times averaged 4.21 weeks in early December, the same as last month, but a week longer than in mid-October when HRC lead times averaged 3.16 weeks. Last year at this time, in a period when hot rolled prices were on the rise, HRC lead times were about the same at 4.31 weeks.