Lead Times Dip Despite Mill Price Hikes

Mill lead times on flat rolled steel extended a bit last month, but defied expectations and returned to prior levels despite mill price hikes in December and January, according to the latest data from Steel Market Update’s market trends questionnaire. Lead time for hot roll remains slightly over four weeks, for cold roll slightly over six weeks, and for galvanized and Galvalume slightly over six and a half weeks.

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. At a time when mills are raising prices, one would expect lead times to lengthen, reflecting stronger demand. That does not appear to be the case, at least not yet, as the market moves past the holiday period and shakes out the new mill prices.