Steel Mill Lead Times: One Week Shorter Since Mid-March

Lead times for spot orders of flat rolled and plate have continued to shorten despite the mills’ efforts so far to curtail production and match supply with demand. Lead times for steel delivery are a measure of demand at the mill level—the shorter the lead time, the less busy the mill. Average lead times for most products have shortened by more than a week since mid-March as the coronavirus has taken its toll on the economy and steel demand, according to returns from Steel Market Update’s latest market trends questionnaire.

Hot rolled lead times now average 3.48 weeks, down from 4.50 a month ago. Cold rolled orders currently have a lead time of 5.32 weeks, down from 6.28. The current lead time for galvanized steel is 5.66 weeks, compared with 6.84, while Galvalume is at 6.09 weeks, down from 6.82 in SMU’s mid-March check of the market.