CHICAGO U.S. Steel Corp. has increased prices for coating-weight extras for hot-dipped galvanized and galvannealed products.
The Pittsburgh-based steelmaker said the moveeffective with Oct. 1 shipmentsis necessary because of higher zinc costs, according to a customer letter dated Aug. 19.
"The cost to procure zinc for our hot-dipped galvanized and galvannealed products has steadily increased as the year has progressed," U.S. Steel said in the letter. "Additionally, the incremental premiums to deliver zinc to our North American facilities where we coat steel have also increased each of the last two years, an increase that we have not attempted to pass though."
U.S. Steels move to hike coating extras comes after Charlotte, N.C.-based Nucor Corp. announced an increase earlier this month (amm.com, Aug 8).
Market sources had expected (amm.com, Aug. 15) and continued to expect Aug. 20 that other domestic steelmakers will follow.