Final Thoughts
September 20, 2017
Final Thoughts
Written by John Packard
Zinc is once again trading above $1.40 per pound ($1.42 as of 3:30 PM ET) and the smaller steel mills and converters are wondering why U.S. Steel, ArcelorMittal USA and Nucor haven’t made the move to higher zinc coating extras on galvanized steel? We have seen four mills make changes on their “spot” new orders: NLMK USA, USS/POSCO, California Steel and AK Steel. Mills like Wheeling/Nishin (who tends to follow U.S. Steel), CSN (Terre Haute, IN) and Ternium are sitting back and waiting.
Although one of the mills told us that since coated transaction prices are not able to be increased in the current market, the net effect of the higher zinc cost is a squeeze on margin.
