Steel Mills

Nucor First Mill to Adjust Galvanized Coating Extras

Written by John Packard


Due to the higher LME zinc spot prices which have surged from about $.88 per pound in late March 2014 to just below $1.10 per pound in mid to late July, Nucor became the first steel mill to adjust their zinc coating extras for galvanized steel. With little fanfare, Nucor published new extras on the Nucor Sheet Mill Group website. Steel Market Update has reproduced both the new extras which are effective as of October 6, 2014 (production and shipment) as well as their old extras which went into effect on January 3, 2012.

We did a quick analysis of Nucor thickness and width extras and we did not see any changes. We did notice some adjustments to advanced high strength steel extras so you will need to check your quality extras to make sure they have remained the same. The biggest differences are in the zinc coating extras.

I believe the extras we are showing below are from the Berkeley, SC steel mill. The largest variances will be found in the thinner steels (lighter gauge) and heavier coating weights (more zinc applied to the steel thus raising the cost). For example, the .058 G90 old extra was $3.00/cwt and the new extra is now $3.50/cwt or an increase of $.50/cwt ($10 per ton). If you move to a thinner steel such as .0187 G90 the old extra was $8.25/cwt and the new extra as of October 6th will be $9.75/cwt or an increase of $1.50/cwt ($30 per ton).

We will do a more detailed analysis of the new Nucor extras versus the existing extras at the other steel mills in Thursday evening’s edition of Steel Market Update.

New coating extras effective October 6, 2014:

Old coating extras effective January 3, 2012:

The full Nucor pricing sheets can be found on their website here.

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