Steel Mills

ArcelorMittal Hikes CR & Coated by $30
Written by Tim Triplett
August 14, 2018
Mills historically have enjoyed a healthy price premium for cold rolled and galvanized products over hot rolled, at times reaching as high as $220 per ton. More recently, due to the tight supplies of hot rolled, the differential has dipped as low as $80 per ton, prompting at least one mill to act.
ArcelorMittal USA notified customers today of a $30 per ton price increase on its tandem-mill-produced sheet products. The announcement affects cold rolled, hot-dipped galvanized, Galvalume and electrogalvanized sheet, effective immediately on all new orders and recent quotes that have not been accepted with AMUSA or AMNS Calvert.
During a webinar hosted by the CRU Group today, CRU analyst Josh Spoores noted that the spread between hot rolled and cold rolled/galvanized has averaged $110 per short ton since 1980.
“Certainly, [the spread] has gotten more volatile in the last few years,” he said. “The hot rolled supply is a little bit tighter than other products because of the situation with OCTG imports and the quota on Korea, which is a major supplier. The way we look at it, the spread is going to levitate back toward the $120 per ton level. It’s just a matter of how quickly.”
He estimates the current spread between hot rolled and galvanized at around $86 per ton. With the price of zinc down around $1.12 per pound, from recent highs above $1.60, the price of galvanized is at risk of declining in the near term, he added.

Tim Triplett
Read more from Tim TriplettLatest in Steel Mills

Explosion rocks ArcelorMittal’s DR plant in Mexico
ArcelorMittal reported a "strong" explosion at the direct reduction part of its massive Lazaro Cardenas mill in Mexico.

SDI to acquire remaining stake in New Process Steel
Steel Dynamics Inc. (SDI) announced that it has agreed to acquire the remaining 55% equity interest in New Process Steel.

North Star results improve despite buyer caution as tariffs drive prices higher
North Star BlueScope said it is optimistic that US tariffs will bolster selling prices and tighten the spread the Australia-based steel maker suffered in 2025.

AISI: Domestic steel production edges down
US raw steel production declined last week, according to the latest data released by the American Iron and Steel Institute (AISI).

Cliffs inks longer-term contracts with US automakers hedging tariff inflation: Report
Cleveland-Cliffs Inc. has reportedly signed "unusually long" fixed-price supply agreements with multiple US automakers.