SMU annual price review

The price premium of galvanized coil over hot-rolled (HR) coil has narrowed over the past two months, resuming the downward trend seen for most of the last year. As of May 27, the spread between these two products is at one of its lowest levels in nearly two years.

CRU analysts discuss how downward pressure on the US premium has persisted due to weakness in key consuming sectors, while concerns over zinc supply have been largely alleviated for the time being.

The evolution of the U.S. HRC futures curve since my last update on April 17 tells a familiar story: fleeting optimism giving way to renewed caution.

Domestic hot-rolled coil prices moved lower again, maintaining the downward move seen in eight of the last 10 weeks.

The US mills have managed to reduce pig iron prices to correspond with the sharp declines in domestic scrap prices in May.