Steel Mills
August 21, 2018
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.
