Steel Mills
Hot Rolled and Galvanized Price Spread Narrows
January 25, 2023
The spread between hot-rolled coil (HRC) and galvanized coil base prices has narrowed week over week, but has hovered around the $200-per-ton range since the end of November.
Figure 1 shows both SMU’s hot rolled and galvanized prices.
SMU’s HRC price averaged $760 per ton ($38 per cwt) as of Tuesday, Jan. 24, an increase from $740 per ton ($37 per cwt) one week earlier and $685 per ton ($34.25 per cwt) at the end of December.
Our latest galvanized price index averaged $950 per ton ($47.50 per cwt) Tuesday, up from $940 per ton ($47 per cwt) a week earlier and $885 per ton ($44.25 per cwt) a month ago.
Figure 2 details the premium of the galvanized price over hot rolled, according to SMU data.
The premium this week is $190 per ton, down from $200 per ton a week earlier and at the end of December.
We calculated the galvanized price premium over hot rolled as a percentage of hot-rolled prices, as shown in Figure 3. This is an attempt to paint a clearer comparison against historical pricing data.
The latest premium stands at 25% vs. 27% last week and 29% at the end of 2022.
By Ethan Bernard, ethan@steelmarketupdate.com
Latest in Steel Mills
AISI: Raw steel production backs off multi-year high
US raw steel output edged lower last week after hitting a multi-year high in mid-June, according to the American Iron and Steel Institute (AISI).
Private equity firm Atlas Holdings to acquire Evraz North America
Atlas Holdings said it has signed a definitive agreement to acquire Evraz North America (Evraz NA). The Greenwich, Conn.-based private equity firm said it expects the deal for the Chicago-based steelmaker to close in the second quarter of 2025 subject to various closing condition.
Granite City Works must remain open and other terms of the Nippon-USS deal
SEC documents also name Trump specifically as having veto power certain decisions are part of the “Golden Share” provision.
USS shuffles some leadership roles after close of Nippon deal
USS shuffles leadership deck after deal closes with Nippon.
ArcelorMittal fires up steelmaking at Calvert mill
With the marking of the EAF’s first heat earlier this month, the mill has moved from a rerolling and finishing mill to a full steelmaking facility.