SMU Data and Models
November 24, 2020
Steel Mill Lead Times: Persistently Longer
Written by Tim Triplett
Lead times for spot orders of hot rolled steel have extended by another half-week as demand persistently outpaces supplies. Lead times for steel deliveries continue to stretch with hot rolled now averaging nearly seven and a half weeks and coated steel orders around nine and a half weeks. Lead times are an indicator of steel demand—longer lead times mean the mills are busy and less likely to discount prices.
According to Steel Market Update’s check of the market this week, current hot rolled lead times average 7.31 weeks, up from 6.82 two weeks ago. HR lead times have extended by a full month since hitting 3.25 weeks at the low point in April.
