SMU Data and Models
March 8, 2020
Steel Mill Lead Times: Not Much Change
Written by Tim Triplett
Average mill lead times for spot orders of flat rolled steel saw little change this past week. In fact, according to Steel Market Update’s surveys of the market, lead times have moved up or down by just a day or two, depending on the product, since the beginning of the year. Lead times for steel delivery are an indicator of demand at the mill level. The longer the lead time, the more busy the mill, and the less likely they are to negotiate on price. The current averages, which are higher than at this time last year, show the mills sustaining relatively healthy order levels.
Comparing the data, the average lead time for spot orders of hot rolled this week was 4.64 weeks, up slightly from 4.61 weeks in mid-February. Cold rolled was at 6.44 weeks, down slightly from 6.55 weeks two weeks prior. Galvanized was at 7.16 weeks, up slightly from 6.93, while Galvalume was at 7.38 weeks, down from 7.45. The average plate lead time this week was 4.71 weeks, slightly shorter than the 4.90 weeks in the prior survey.
