Steel Mill Lead Times: Getting Longer

Lead times for spot orders of flat rolled steel are stretching out as demand improves and the mills get busier. Lead times for hot rolled and plate steels have extended past four weeks, while lead times for cold rolled and coated are now longer than six weeks. Lead times are an indicator of steel demand—longer lead times indicate the mills have more orders to process and are likely less inclined to negotiate on prices.

According to Steel Market Update’s check of the market this week, hot rolled lead times now average 4.21 weeks, up from 3.67 weeks in early August. HR lead times are nearly a week longer than in the trough of the pandemic in late April at 3.25 weeks.