Steel Mill Lead Times: Continue to Extend as Mills Get Busier

Lead times for spot orders of flat rolled and plate steels have extended in the past four weeks as demand has picked up and mill production has come down. In response to the COVID-19 shutdowns of nonessential businesses in March, steel producers idled furnaces to sync their output with demand. Lengthening lead times this week suggest the mills are busier than they were a month ago and that demand may be improving as government restrictions ease and more companies get back to work.

Hot rolled lead times now average 3.73 weeks, up from 3.38 in mid-May. Cold rolled orders currently have a lead time of 5.71 weeks, up from 5.23 a month ago. The current lead time for galvanized steel is 5.95 weeks, up from 5.60, while Galvalume is at 6.00 weeks, up from 5.80 in SMU’s check of the market four weeks ago.