Steel Products Prices North America

Hot Rolled and Galvanized Price Spread Declining

Written by Laura Miller

May 31, 2023

The spread between hot-rolled coil (HRC) and galvanized coil base prices has been trending downward since mid-April when steel prices also began their descent.

Figure 1 shows both SMU’s hot rolled and galvanized prices.

SMU’s HRC price averaged $990 per ton as of Tuesday, May 30, unchanged from the previous week and down 14.7% from the highest level seen so far this year of $1,160 per ton during the week of April 11.

Our latest galvanized price averaged $1,100 per ton on Tuesday, also unchanged from the week prior but down 18.5% from this year’s peak of $1,350 per ton during the weeks of April 11 and April 18.

05.31.23 HR vs Galv 1

The galvanized price premium over hot rolled averaged $175 per ton this week and is highlighted in Figure 2. That’s the lowest the premium has been since mid-March.

The recent peak in the premium was during the week of April 14 when it hit $225 per ton. The premium had previously not been that high since late-November.

05.31.23 HR vs Galv 2

In an attempt to paint a clearer comparison against historical pricing data, the galvanized premium over hot rolled as a percentage of HRC prices is shown in Figure 3.

This week, the premium stands at 18%. This is unchanged since late April. The highest premium so far this year was during the first week of the year when it stood at 29%. It plummeted to as low as 9% during the week of March 7.

05.31.23 HR vs Galv 3

By Laura Miller, laura@steelmarketupdate.com

Laura Miller

Laura Miller is a reporter and editor for Steel Market Update. She has held a variety of positions within the steel industry since 2007, including reporting and editing for Steel Business Briefing/Platts, the Association for Iron and Steel Technology, and Kallanish Commodities, as well as marketing for what was then known as ThyssenKrupp Steel USA (now AM/NS Calvert). After a five-year hiatus working across other industries, she returned to steel in 2021 and has covered the flat rolled, tubular, and trade areas of the industry. She is a member of the Association of Women in the Metal Industries and a past-president of the AWMI Pittsburgh Chapter. She holds a BA in Latin American Studies from Edinboro University of Pennsylvania. She can be reached at laura@steelmarketupdate.com or 724-759-7869.

Read more from Laura Miller

Latest in Steel Products Prices North America