Steel Mill Lead Times: Extend Even Further

Mill lead times on flat rolled steel orders continue to extend as supplies tighten and buyers scramble to replenish inventories ahead of the next price increase. One of the key indicators tracked by Steel Market Update, lead times reflect the activity at the mills and the order levels they are seeing from their customers. About 30 percent of respondents to this week’s SMU market trends questionnaire report that lead times are highly extended, while an additional 42 percent call them slightly longer than usual. Another 27 percent consider lead times normal for this time period. None consider them shorter. SMU’s latest data indicates that the average lead time for hot rolled has grown to between five and six weeks, while cold rolled and galvanized are approaching eight weeks. The lone exception is the lead time for Galvalume, which shortened a bit to seven weeks.

Hot rolled lead times now average 5.65 weeks, up from 4.95 weeks in mid-February. Hot rolled lead times have extended by more than two weeks since steel prices began rising in October.