Steel Mill Lead Times: Extending Following Price Hikes

Lead times for steel delivery have continued moving out over the past two weeks as the three price increases announced by the mills have drawn more buyers off the sidelines. The average lead time for hot rolled has moved up to more than four weeks, cold rolled to about six weeks, and coated steels to nearly six and a half weeks. Plate lead times continue to buck the flat rolled trend and are slightly lower than reported two weeks ago.

Lead times for steel delivery are a measure of demand at the mill level. The longer the lead time, the busier the order activity at the mills, and the less likely they are to discount prices.