Steel Products
June 6, 2019
Steel Mill Lead Times: Shorter Still
Written by Tim Triplett
Lead times for spot orders of all types of steel products continued to shorten in the past two weeks with demand falling below the pace of steel production. The average lead time for hot rolled is now below three and a half weeks, cold rolled is nearing five weeks, galvanized is less than six weeks and Galvalume is slightly above six weeks. Lead time for steel plate has declined to nearly four and a half weeks, according to Steel Market Update data. Our graphic (shown below) tells the tale and helps to explain why there has been pressure on flat rolled and plate steel pricing.
Lead times for steel delivery are a measure of demand at the mill level. The shorter the lead time, the lighter the order activity at the mills and the more likely they are to negotiate on price.
