SMU Data and Models
October 15, 2020
Steel Mill Lead Times: Extend to 6-8 Weeks
Written by Tim Triplett
Lead times for hot rolled steel now average longer than six weeks, and coated steel orders longer than eight weeks, as the mills remain busy in a market adjusting to business in a pandemic. 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 6.15 weeks, up from 5.78 two weeks ago and 5.50 weeks at this time last month. HR lead times have stretched by nearly three weeks since hitting 3.25 weeks at the low point in April.
