California Steel Industries, Nucor and USS-UPI notified customers of an upward revision to their galvanized steel coating extras earlier this week.
Prior to this change, many mills had revised their galvanized coating extras in late-2021, with new prices going into effect in January 2022.
Although the reason for these updated extras was not specifically mentioned by any mill, significant changes in zinc spot prices tend to trigger revisions in coating extras. According to Kitco, zinc spot prices had spiked last October from $1.40 per pound to a record $1.74 per pound in roughly two weeks. Prices eased to $1.50 per pound soon after, but began to creep back up in mid-December, hovering around $1.60-1.65 per pound since the beginning of this year. Recall that zinc spot prices reached a multi-year low back in March 2020 at $0.82 per pound.
SMU provides a comparison of mill galvanized coating extras here in the Resources section of our website, comparing G30, G60, and G90 coating weights between 10 U.S. mills. Detailed extras by individual mill are also available via the right-side navigation menu on that page.
By Brett Linton, Brett@SteelMarketUpdate.com
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