U.S. Steel has released updated galvanized steel coating extras, with new prices going into effect on Jan. 2, 2022.
Other mills have also adjusted their coating extras due to rising zinc costs in recent months; NLMK, Big River Steel, and Nucor all have revised extras going into effect in January 2022, and ArcelorMittal USA and Cleveland-Cliffs had new extras go into effect back in October. SMU reguarly updates our galvanized coating extras comparison by mill here on our website.
Zinc spot prices had spiked in mid-October, reaching a record $1.74 per pound, according to Kitco. Prices have since eased but remain relatively high, hovering around $1.50 per pound for the past few weeks. Recall that zinc spot prices reached a multi-year low back in March 2020 at $0.82 per pound.
SMU has done an analysis on the old and new extras, provided below. Select U.S. Steel extras increased between 10-15%, with an average increase of 12.9% across the weights in the below table.
By Brett Linton, Brett@SteelMarketUpdate.com
Brett LintonRead more from Brett Linton
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