SMU Data and Models
Steel Mill Lead Times: Essentially Unchanged from 2 Weeks Ago
Written by John Packard
March 9, 2017
Hot rolled average lead times remain extended at 4.38 weeks compared to the 3.79 weeks SMU was reporting one year ago. Cold rolled, galvanized and Galvalume lead times were running close to or just below last year’s reported average.
Lead time is the average amount of time it takes for a new order of a product to be produced at a domestic steel mill. The lead time averages are based on the collective responses to our early March flat rolled steel survey made by manufacturers and service centers. The average lead time is not tied to any one mill and can vary so buyers need to be aware of the exact lead times being quoted on all products at each of the domestic mills by contacting their mill representative.
Hot rolled lead times continue to be slightly extended at almost 4.5 weeks. As mentioned at the beginning of this article the lead time average produced today is one half a week longer than what we reported one year ago.
Cold rolled lead times are averaging 6.5 weeks (6.53 weeks) and are just under the 6.71 weeks reported one year ago.
Galvanized lead times are just under 7 weeks (6.83 weeks) which is approximately one half a week shorter than one year ago.
Galvalume lead times were also just under 7 weeks (6.93 weeks) which is about one quarter a week shorter than one year ago.
A side note: The data for both lead times and negotiations comes from only service center and manufacturer respondents. We do not include commentary from the steel mills, trading companies, or toll processors in this particular group of questions.
To see an interactive history of our Steel Mill Negotiations data, visit our website here.
John Packard
Read more from John PackardLatest in SMU Data and Models
Apparent steel supply eases in August
The volume of finished steel entering the US market declined in August from July, according to SMU’s analysis of data from the US Department of Commerce and the American Iron and Steel Institute (AISI). Referred to as ‘apparent steel supply,’ we calculate this monthly rate by combining domestic steel mill shipments and finished US steel imports and deducting total US steel exports.
September service center shipments and inventories report
Flat rolled = 60.8 shipping days of supply Plate = 52.7 shipping days of supply Flat rolled Flat-rolled steel supply at US service centers declined in September, though still seasonally high. September’s report reflects lower demand, stable lead times, and restocking early in the third quarter at a perceived bottom in prices. At the end […]
SMU market survey results now available
SMU’s latest steel buyers market survey results are now available on our website to all premium members. After logging in at steelmarketupdate.com, visit the pricing and analysis tab and look under the “survey results” section for “latest survey results.” Past survey results are also available under that selection. If you need help accessing the survey results, or if […]
SMU survey: Steel Buyers’ Sentiment Indices diverge
SMU’s Steel Buyers’ Sentiment Indices moved in different directions this week. Our Current Steel Buyers’ Sentiment Index eased to a six-week low, while Future Buyers’ Sentiment ticked up to a four-week high. Both of our Indices continue to indicate optimism among steel buyers.
SMU survey: Mill lead times stretch out marginally
Steel mill lead times inched up this week for most sheet and plate products, according to buyers responding to our latest market survey.