Steel Mill Lead Times: Predictions of a Trend Change Premature

In mid-August, when lead times registered their first significant decline of the year, some interpreted it as a sign the pendulum had finally begun to swing the other way. Lead times have long been expected to shorten as the mills’ ability to supply the market finally catches up with demand. But any predictions of a trend change appear premature, as Steel Market Update’s latest data shows lead times extending again by a half week or more on hot rolled, cold rolled and plate. Lead times on coated products were the exception.

Until last month, lead times for spot orders of steel had extended continuously since the spring of 2020 when the market hit bottom due to the pandemic. The average lead time for hot rolled was a quick 3.25 weeks in late April 2020.