Steel Mills
ArcelorMittal Hikes CR & Coated by $30
Written by Tim Triplett
August 14, 2018
Mills historically have enjoyed a healthy price premium for cold rolled and galvanized products over hot rolled, at times reaching as high as $220 per ton. More recently, due to the tight supplies of hot rolled, the differential has dipped as low as $80 per ton, prompting at least one mill to act.
ArcelorMittal USA notified customers today of a $30 per ton price increase on its tandem-mill-produced sheet products. The announcement affects cold rolled, hot-dipped galvanized, Galvalume and electrogalvanized sheet, effective immediately on all new orders and recent quotes that have not been accepted with AMUSA or AMNS Calvert.
During a webinar hosted by the CRU Group today, CRU analyst Josh Spoores noted that the spread between hot rolled and cold rolled/galvanized has averaged $110 per short ton since 1980.
“Certainly, [the spread] has gotten more volatile in the last few years,” he said. “The hot rolled supply is a little bit tighter than other products because of the situation with OCTG imports and the quota on Korea, which is a major supplier. The way we look at it, the spread is going to levitate back toward the $120 per ton level. It’s just a matter of how quickly.”
He estimates the current spread between hot rolled and galvanized at around $86 per ton. With the price of zinc down around $1.12 per pound, from recent highs above $1.60, the price of galvanized is at risk of declining in the near term, he added.
Tim Triplett
Read more from Tim TriplettLatest in Steel Mills
Toyota Tsusho America to acquire Radius Recycling for $1.34 billion
The companies said Thursday that Radius shareholders will receive $30 per share in cash upon the deal’s closing, which is expected in the second half of this year.
Algoma resumes steel shipments to US, sees opportunity in tariffs
Algoma Steel has resumed shipments to the US, effective Friday, March 14. And the Canadian steelmaker sees a potential opportunity with the current tariff situation.
Algoma posts narrower Q4 loss, braces for tariff impact as US shipments pause
Algoma Steel's net loss narrowed in the fourth quarter vs. a year earlier amid economic uncertainty and tariff-related issues.
Evraz NA refutes report it falsified tests on plate for US military
Employees at Evraz North America, a subsidiary of Russia's Evraz plc, reportedly falsified quality control test results on armored plate for military vehicles. Evraz NA denies the claims.
Pacific Steel breaks ground on California rebar mill
Pacific Steel Group has broken ground on its Mojave Micro Mill in Southern California.