SMU Data and Models
July 9, 2020
Steel Mill Lead Times: No Clear Trend
Written by Tim Triplett
Lead times for spot orders of flat rolled steel saw minor and inconsistent changes in the past two weeks, revealing no clear trend. Hot rolled lead times extended slightly, while lead times for cold rolled and galvanized were flat and plate lead times declined, according to Steel Market Update’s check of the market this week. Lead times are an indicator of steel demand—longer lead times suggest the mills are getting busier and are less likely to discount prices. Shorter lead times indicate the opposite.
Hot rolled lead times now average 3.79 weeks, up from 3.59 in the last week of June. Cold rolled and galvanized lead times were virtually unchanged at 5.77 and 5.97 weeks, respectively. The current lead time for Galvalume averages 6.33 weeks, up from 5.80 last month, while the average plate lead time has shortened to 4.18 weeks from 4.55 in SMU’s prior poll.
