SMU Data and Models
October 29, 2020
Steel Mill Lead Times: Extend Even Further
Written by Tim Triplett
Lead times for spot orders of steel continue to extend with hot rolled delivery now averaging more than six and a half weeks and coated steel orders around eight and a half weeks. Lead times are an indicator of steel demand—longer lead times mean 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, current hot rolled lead times average 6.58 weeks, up from 6.15 two weeks ago and 5.78 at this time last month. HR lead times have doubled since hitting 3.25 weeks at the low point in April.
