SMU Data and Models
January 7, 2021
Steel Mill Lead Times: Little Change in New Year
Written by Tim Triplett
Hot rolled lead times were slightly shorter this week, but lead times for other products were the same or slightly longer, based on Steel Market Update’s first check of the market in the new year. Lead times for deliveries of hot rolled were still highly extended at an average of nearly eight weeks, and it’s too early to tell if the slight shortening is a statistical blip or the initial sign of a change in the works. Lead times are an indicator of steel demand—longer lead times mean the mills are busy and less likely to negotiate on price.
Current hot rolled lead times average 7.87 weeks, down slightly from 8.24 two weeks ago. HR lead times have extended by four and a half weeks since hitting 3.25 weeks at the low point in April.
