Change Unlikely in Coating Extras

In early June, the price of zinc had nosed down to about $1.10 per pound, raising hopes among buyers of galvanized steel that the mills might consider rolling back their coating extras–the extras mills charge when applying zinc to cold rolled or hot rolled substrate to produce galvanized products. Those hopes were short-lived as the market price for zinc rose steadily throughout the month to $1.25 per pound as of June 28.

What is driving the price of zinc? The value of the dollar has been weakening against other currencies since April, giving a boost to commodities of all types. Now the market’s concern is if and when the cost of coatings might go up. The last hike in the mill extras took effect on Jan. 3, 2017, when the cost of zinc was around $1.22 per pound.