SMU Data and Models
October 28, 2021
Steel Mill Lead Times: Downtrend Continues
Written by Tim Triplett
Lead times for orders of flat rolled and plate steel from the mills have shortened again compared to this time last month. About 60% of the buyers responding to Steel Market Update’s survey this week describe lead times as just “slightly longer than normal.” Only 15% still consider them “highly extended.”
SMU’s check of the market shows that the typical hot rolled lead time is down to nearly eight weeks, while cold rolled and coated products are now below 11 weeks. Plate lead times have shrunk to less than seven weeks. While still twice as long as the historical averages, lead times appear to be shortening very gradually but consistently, which may foretell declining steel prices in the weeks and months ahead.
