Steel Dynamics (SDI) has lowered metallic coating extras in response to declining zinc and aluminum prices.
The new extras are effective Aug. 1, 2022. They apply not only to galvanized products but also to Galvalume, Galfan, and aluminized material, the Fort Wayne, Ind.-based steelmaker said.
“Since the most recent adjustment to our published metallic coating extras in April of this year, we have seen price levels retract,” SDI said in a letter to customers on Tuesday, July 5.
“Although the supply of zinc and aluminum remains constrained, there has been a steady decrease in LME pricing,” the company added.
The zinc spot price as of Tuesday was $1.38 per pound, the lowest price seen since early October 2021. Zinc prices have eased since peaking at over $2 per pound in April, per Kitco.
An up-to-date comparison of galvanized extras by mill is available here on our website.
SMU has analyzed the old and new extras below. Select SDI extras decreased between 9-11%, with an average decrease of 10%. SDI extras were previously revised on March 7, 2022, going into effect on April 1.
By Brett Linton, Brett@SteelMarketUpdate.com
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