Steel Mill Lead Times: Extend Further

Lead times for spot orders of flat rolled and plate steels continue to extend and are around two weeks longer than in April at the depth of the pandemic as demand recovers and supplies tighten. Lead times for hot rolled now average five and a half weeks, cold rolled and galvanized over seven weeks, and Galvalume, which is in short supply, over eight weeks. Lead times are an indicator of steel demand—longer lead times indicate the mills have more orders to process and are less likely to negotiate on prices.

According to Steel Market Update’s check of the market this week, hot rolled lead times now average 5.50 weeks, up from 4.97 weeks two weeks ago and 4.21 weeks at this time last month. HR lead times have stretched more than two weeks since hitting 3.25 weeks at the low point in April.