Steel Mill Lead Times: Mixed Messages

Lead times for spot orders of hot rolled and Galvalume steels continued to lengthen a bit over the past two weeks, while lead times for cold rolled, galvanized and plate products were flat to slightly lower. Lead times for hot rolled now average more than five and a half weeks, cold rolled more than seven weeks, galvanized nearly eight weeks, and Galvalume more than eight weeks. The average plate lead time has dipped below five 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. The mills raised prices on both flat rolled and plate products this week, which may have an effect on lead times in the coming weeks.

According to Steel Market Update’s check of the market this week, hot rolled lead times now average 5.78 weeks, up from 5.50 two weeks ago and 4.97 weeks at this time last month. HR lead times have stretched by two and a half weeks since hitting 3.25 weeks at the low point in April.