SMU Data and Models
November 24, 2020
Steel Mill Lead Times: How Much Further Can They Extend?
Written by Tim Triplett
How much further can lead times extend? We’ll let you know. But there is no sign yet that they have peaked. Lead times for delivery of spot orders continue to stretch with hot rolled now averaging nearly seven weeks and coated steel orders nearly nine 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 6.82 weeks, up from 6.62 two weeks ago. HR lead times have more than doubled since hitting 3.25 weeks at the low point in April.
