Steel Products Prices North America

SDI Follows Suit on Coating Extras

Written by Tim Triplett


Galvanized steel prices are on the way up for customers of Steel Dynamics, which was the latest mill to announce an increase in its coating extras due to the high price of zinc, which traded at nearly $1.43 per pound yesterday.

SDI’s new extras schedule is effective on orders acknowledged for delivery beginning Jan. 1. The mill last updated its extras in April.

In a letter to its customers on Nov. 30, SDI said: “In concert with the rise in steelmaking inputs and other commodity pricing, LME zinc and aluminum costs and premiums have risen in a sustained and dramatic fashion across 2017. SDI monitors all costs regularly and only makes adjustments based on careful analysis and sustained trends. These adjustments recover only a portion of the price escalation we have incurred year-to-date. Should these commodity metals persist at current levels or rise further, additional adjustments may be necessary.”

SDI’s announcement brings it in line with several mills that have already adjusted their extras, including Nucor, AK Steel, NLMK USA, California Steel and USS/POSCO. Yet to be heard from is ArcelorMittal.

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