More Mills to Follow Nucor Lead on Coating Extra Increase

Steel Market Update communicated with a number of the galvanized steel mills and learned that galvanized steel buyers should anticipate new coating extras out of most, if not all, of the domestic steel mills. Our discussions with the galvanizing mills found conversations are being held within the mills as they question whether they should return to 2011 galvanized coating levels or match the new Nucor extras.

Part of that decision making process could be related to competitive pressures between each individual steel facility and Nucor. We are aware of at least one situation where there may actually be different coating extras at different facilities within a single mill supplier due to the geographical relationship with competing Nucor mills.