Steel Mills
Nucor First Mill to Adjust Galvanized Coating Extras
Written by John Packard
August 12, 2014
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.
John Packard
Read more from John PackardLatest in Steel Mills
USS/Nippon deal: Who will have the happiest holidays?
Will Santa bring gifts for the leadership, employees, and shareholders of U.S. Steel and Nippon Steel, and lumps of coal for USW leadership and politicians opposed to the deal?
‘Orderly liquidation’ of AHMSA assets begins
A trustee has formally taken over AHMSA and begun the liquidation process of the bankrupt Mexican steelmaker.
Nippon buying stake in Canadian iron ore project
Nippon Steel and a Japanese trading company have entered an agreement to buy a 49% interest in a Champion Iron ore project in Canada.
USS anticipates Q4 loss on weak demand, BR2 start-up
Amid a challenging pricing and demand environment, and with the ongoing ramp-up of the Big River 2 mill, USS is anticipating a loss for the fourth quarter.
Nucor blames steel mills segment for depressed Q4 guidance
Nucor cited decreased volumes and prices in it steel mills segment as the key driver of its lower guidance for the fourth quarter.