Service Centers
Sheet Mill Lead Times See First Significant Gains Since Early Jan
Written by Becca Moczygemba
February 16, 2023
Steel mill lead times, following recent pricing moves, have pushed upwards, according to SMU’s latest market survey.
SMU’s hot-rolled lead time is approximately 5.4 weeks, up from 4.9 weeks at our last check of the market two weeks ago.
The result is notable because lead times have been just below five weeks since the beginning of the year, according to our pricing tool.
Cold-rolled lead times increased to 7 weeks from 6.6,weeks, the longest lead time since April 2022 when it stood at 7.6 weeks. Galvanized inched up to 6.7 weeks from 6.4 weeks two weeks ago.
Galvalume lead times were 7.5 weeks on average, the same as the first week of 2023, and up from 6.4 weeks at the last market check. Note that Galvalume figures can be volatile due to the limited size of that market and our smaller sample size.
Plate lead times rose by 0.2 weeks from 5 weeks in the first week of February vs. two weeks earlier.
When asked about the future direction of lead times, 61% of survey respondents reported they expect lead times to be relatively flat into April. About 23% percent think lead times will extend, while approximately 16% think they will contract. Premium members can view a longer history of this data series and others by exploring the market trends report.
Looking at lead times on a three-month moving average (3MMA) basis can smooth out the variability in the biweekly readings. As a 3MMA, lead times for all products have been generally stable over the past month. The latest 3MMA lead time for hot rolled inched up 0.3 weeks to 4.9 weeks. Cold-rolled also saw a 0.3-week increase, moving up to 6.5 weeks. Galvanized lead times ticked up to 6.3 weeks from 6.1 weeks, while Galvalume lead times increased 0.3 weeks to 6.8 weeks. Plate lead times rose only 0.1 week.
Note: These lead times are based on the average from manufacturers and steel service centers who participated in this week’s SMU market trends analysis. SMU measures lead times as the time it takes from when an order is placed with the mill to when the order is processed and ready for shipping, not including delivery time to the buyer. Our lead times do not predict what any individual may get from any specific mill supplier. Look to your mill rep for actual lead times. To see an interactive history of our Steel Mill Lead Times data, visit our website here.
By Becca Moczygemba, becca@steelmarketupdate.com
Becca Moczygemba
Read more from Becca MoczygembaLatest in Service Centers
Ryerson swung to loss in ’24, but saw fortunes improve over the last month
Ryerson swung to a loss in the fourth quarter, but has seen a turnaround in the last 30 days.
Despite policy uncertainty, Reliance upbeat on ’25
Reliance noted that it is about 95% domestically sourced.
Russel Metals posts solid quarter, doesn’t expect direct impact from tariffs
Russel Metals said on Thursday that it doesn’t expect to be directly impacted by US tariffs on Canadian steel. The Mississauga, Ontario-based distributor made the comments in its quarterly earnings report on Thursday. The company doesn’t export significant volumes to the US, it said, and thus doesn’t expect to be directly impacted. However, “The primary […]
Friedman logs quarterly loss amid ‘challenging conditions’
Friedman swings to a loss in its fiscal third quarter of 2025.
Tampa Steel Conference: Service centers more upbeat about 2025
If 2021 and 2022 was the party, 2024 is the morning after, one panelist said.