SMU Hot Rolled vs Galvanized Price Spread Analysis

The relationship between hot rolled and galvanized steel prices has been unstable since late 2021, with galvanized selling at a premium of anywhere between $135-545 per ton ($6.75-$27.25 per cwt) over hot rolled in the past year. The premium reached a record high in February but then quickly narrowed in March. Although steel prices have been declining for the past three months, the spread between hot rolled and galvanized prices continues to grow, hovering in the $400/-per-on range for the last ten weeks.

SMU’s hot rolled coil price averaged $840 per ton last week and has declined each of the past 14 weeks. Recall our index had reached a 14-month low of $1,000 per ton in the first week of March, following a record-high $1,955 per ton in September 2021. Our latest galvanized price index averaged $1,270 per ton ($63.50 per cwt) last week and has also decreased for the last 14 weeks. Galvanized prices peaked at $2,185 per ton last September and fell to a 12-month low of $1,420 per ton in early March.