SMU Data and Models
Steel Mill Lead Times Weaker than Last Year
Written by John Packard
August 20, 2015
Lead times for hot rolled, cold rolled, galvanized and Galvalume steels continue to remain moderately short at most of the domestic steel mills according to the results of this week’s flat rolled steel market analysis.
Hot rolled lead times averaged 3.38 weeks which is essentially unchanged over the past month and below the 4 week average we were reporting in mid-June and early July. Last year at this time HRC lead times averaged 4.30 weeks, a full week longer than what we are seeing today.
Cold rolled lead times averaged 5.48 weeks, again essentially unchanged from the 5.65 weeks from the beginning of the month. CRC lead times have been basically flat going all the way back to May. One year ago lead times were one week longer at 6.38 weeks.
The story on galvanized is similar to that of cold rolled. Lead times averaged 5.58 weeks or down slightly from the 6.0 weeks reported at the beginning of August. Last year lead times were extended by one more week to 6.58 weeks.
Galvalume bucked the trend with our average being slightly longer at 6.50 weeks than the 6.14 weeks reported at the beginning of August. Galvalume lead times are close to what was reported one year ago (6.75 weeks).
To see an interactive history of our Steel Mill Lead Time data, visit our website here.
add pic
John Packard
Read more from John PackardLatest in SMU Data and Models
Apparent steel supply contracts in February
The amount of finished steel that entered the US market in February receded from January’s peak, according to our analysis of Department of Commerce and American Iron and Steel Institute (AISI) data.
SMU Steel Survey: Sentiment Indices dip as buyer optimism softens
SMU’s Buyers’ Sentiment Indices experienced multi-point declines this week, though both remain positive and continue to reflect optimism among steel buyers for their companies' ability to be successful.
SMU Scrap Survey: Current Buyers’ Sentiment flat, Future Sentiment tumbles
SMU's Current Scrap Buyers' Sentiment Index remained flat this month, while the Future Sentiment Index declined.
SMU Survey: Steel mill lead times show diverging trends
Buyers responding to our latest market survey reported that sheet lead times continue to gradually decline from recent highs. Meanwhile, plate lead times increased to levels last seen one year ago.
SMU Survey: Mills unlikely to budge on price, buyers say
Four out of every five steel buyers who responded to our latest market survey say domestic mills are unwilling to negotiate on new order spot pricing. Mills have shown little flexibility on pricing for nearly two months.