SMU Data and Models
Mill Lead Times & Mill Negotiations
Written by John Packard
October 17, 2013
Domestic mill lead times, which had been relatively flat since the beginning of September according to past SMU steel market surveys, are beginning to indicate a modest strengthening. Our survey respondents put hot rolled lead times at 4.07 weeks (last year in mid-October they were 2.93 weeks) which is up slightly from the 3.94 weeks reported at the beginning of this month. Cold rolled lead times are now averaging 6.10 weeks (last year 4.90 weeks), galvanized moved out the most to 6.26 weeks (last year 4.91 weeks) and Galvalume moved out to 6.56 weeks (last year 6.40 weeks) from early October levels which were reported to be 6.33 weeks.
Domestic Mill Negotiations remained subdued according to our survey results. Only 45 percent of those responding reported the domestic mills as willing to negotiate pricing on spot hot rolled orders. The percentages were even lower on cold rolled (41 percent) and Galvalume (40 percent). The highest percentage was reported to be on galvanized with 54 percent of our respondents reporting the mills as willing to negotiate pricing on the product. It would stand to reason that galvanized would have the highest percentage due to the number of conversion mills specializing in the product.
John Packard
Read more from John PackardLatest in SMU Data and Models
SMU’s March at a glance
SMU’s Monthly Review provides a summary of our key steel market metrics for the previous month, with the latest data updated through March 31.
SMU Survey: Steel buyers maintain confident market outlook
SMU’s Buyers’ Sentiment Indices showed mixed movements this week but remain strong, reflecting continued confidence among steel buyers.
SMU Survey: Perspectives differ on impact of Trump tariffs
Are President Trump's tariff policies helping? Steel buyers offer their opinions on the impact of Trump's tariffs.
SMU Survey: Lead times stabilize as tariff-induced buying slows
After a multi-week increase, buyers responding to our market survey this week reported that lead times are stabilizing or marginally declining for each of the sheet and plate products we track.
SMU Survey: Mills hold firm on price, little negotiation room for buyers
The majority of the steel buyers responding to our latest market survey continue to report that domestic mills remain firm on pricing, showing little willingness to talk price on new spot orders this week.