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 TriplettRead more from Tim Triplett
Latest in Steel Mills
Algoma Aims To Ramp Plate Production by Year End
Algoma Steel Inc. plans to ramp up production at its modernized plate mill toward the end the year. Operations Update The Canadian sheet and plate producer said it in the meantime continues hot commissioning at the upgraded facility and has begun cold commissioning as well. The company said it has also run trials through the […]
BREAKING NEWS: Nucor Maintains Plate Prices
Nucor Corp. will keep plate prices unchanged with the opening of its November order book.
Sheet Lead Times Mixed, Plate Plummets
While lead times for sheet again had mixed movements this week, those for plate collapsed, according to SMU’s most recent market survey.
Nucor to Partner With Fusion Company To Power US Mill
Nucor has announced a collaboration with fusion power company Helion to develop a 500-megawatt nuclear fusion power plant.
USW Taps McCall as New President After Conway’s Passing
The United Steelworkers International (USW) executive board on Tuesday appointed David McCall as the union’s new international president. He will fill the remainder of Tom Conway’s term.