Steel Mills
Hot Rolled and Galvanized Price Spread Stands Pat
Written by David Schollaert
February 9, 2023
The spread between hot-rolled coil (HRC) and galvanized coil base prices have been in holding pattern. The spread has been hovering around the $200 per ton ($10 per cwt) since the end of November.
Figure 1 shows both SMU’s hot rolled and galvanized prices.
SMU’s HRC price averaged $810 per ton as of Tuesday, Feb. 7, an increase from $780 per ton one week earlier and up from $695 per ton at the beginning of January.
Our latest galvanized price index averaged $1,000 per ton on Tuesday, up from $970 per ton a week earlier and up from $900 per ton in the first week of 2023.
Figure 2 details the premium of the galvanized price over hot rolled, according to SMU data.
The premium this week is $190 per ton. It’s been sideways since Jan. 24 and is little changed since Nov. 29, 2022, when the premium was $200 per ton.
We calculated the galvanized price premium over hot rolled as a percentage of hot-rolled prices, as shown in Figure 3. This is an attempt to paint a clearer comparison against historical pricing data.
The latest premium stands at 23% vs. 24% last week and 29% at the start of 2023.
By David Schollaert, david@steelmarketupdate.com

David Schollaert
Read more from David SchollaertLatest in Steel Mills

Hybar lowers output forecast, owning up to EAF startup delay
Hybar LLC’s rebar mill in Osceola, Ark., is now melting scrap and will soon be fulfilling orders, according to CEO David Stickler, despite a six-to-eight-week delay caused by commissioning the world’s first Aura electrical system.

Steel Dynamics guides to more metal, more money in Q3
Steel Dynamics Inc. is bullish heading into the close of the third quarter, with all three of its operating segments tracking higher.

AHMSA opens doors to potential buyers as $1.3B asset auction nears
AHMSA is opening its doors to potential buyers to tour its steel plant and mining operations in northern Mexico in preparation for the next stage of its bankruptcy process: the auction of its assets.

USW seeks clarity on USS plans for Granite City Works
The United Steelworkers union has asked U.S. Steel to elaborate on its Granite City Works plans following reports that the steelmaker is ending processing at the facility.

Nucor maintains plate prices, opens October order book
Nucor aims to keep plate prices flat for a seventh straight month with the opening of its October order book.