Final Thoughts
December 19, 2021
Final Thoughts
Written by Tim Triplett
Just as steel mill lead times are leading indicators of steel prices, steel industry lead times may prove to be leading indicators of price trends for other commodities.
As my colleague Michael Cowden reported Wednesday during SMU’s Community Chat with Tom Derry of the Institute for Supply Management, mill lead times on spot orders of hot rolled coil have shortened to around five weeks on average – a dramatic change from the 10-week lead times earlier in the year. Accordingly, HRC prices are now around $1,670 per ton ($83.50 per cwt), down about 15% from their peak in early September.
