Steel Mills

CSI Adjusts Coating Extra on Lower Zinc Price

Written by Tim Triplett


California Steel Industries was the first mill to announce a change to its coating extras this week. Steel Market Update’s comparison of the new rates with the previous rates that took effect one year ago, on Oct. 1, 2017, shows an average reduction of 14.1 percent, with no change in the width/thickness extras.

Buyers of galvanized steel have been waiting to see if and when the mills would adjust their coating extras to reflect the lower cost of zinc. The price of zinc has dipped to as low as $1.05 per pound this month, from highs above $1.60 per pound in February. Zinc is used to apply a corrosion-resistant coating to galvanized steel products.

CSI sent the following notice to customers on Aug. 20: “The purpose of this letter is to inform you that CSI’s October Flat Rolled order book is now open. Due to changing market conditions, we have revised our zinc extras…” The change applies to new orders only.

Steel Market Update is in contact with other mills to see if they plan to follow suit.

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