Steel Mill Lead Times: Extend Slightly

Lead times for spot orders of flat rolled steel extended slightly this week after declining since mid-March when the government ordered the closing of nonessential businesses to stop the spread of the coronavirus. Lead times for steel delivery are a measure of demand at the mill level—the longer the lead time, the busier the mill. Lead times are also a measure of the strength of the recent price increase announcements. Note, the lead times shown come from the SMU flat rolled and plate steel market trends survey just concluded earlier today. The lead times referenced are not from any one specific mill, and domestic mill lead times can vary from producer to producer and for each production facility.

Hot rolled lead times now average 3.38 weeks, up from 3.25 at the end of April. Cold rolled orders currently have a lead time of 5.23 weeks, up from 5.04 two weeks ago. The current lead time for galvanized steel is 5.60 weeks, up from 5.34, while Galvalume is at 5.80 weeks, up from 5.67 in SMU’s late April check of the market.