Steel Mill Lead Times: Gradually Recovering from the Trough

Lead times for spot orders of flat rolled steel from the mills were at their shortest in the week of April 30 as orders dried up due to the coronavirus. Since then lead times have extended by about half a week, but saw only minor fluctuations in June and July. Currently, lead times for hot rolled and plate steels are less than four weeks, while lead times for cold rolled and coated are approximately six weeks. Lead times are an indicator of steel demand—shorter lead times indicate the mills are less busy and more inclined to negotiate on prices.

According to Steel Market Update’s check of the market this week, hot rolled lead times now average 3.67 weeks. That’s up from 3.25 weeks at the trough in late April, but down from 4.36 weeks at this time last year.