Steel Buyers Basics: What is "Spread" & How is it Measured?

You will hear the term “spread” quite often when discussing the differences between flat rolled steel prices from one source to another. The term can be used when discussing domestic steel mills and their differences in pricing on the same product. It can also be used when discussing the differences between foreign steel imports and domestic steel prices.

However, we see the term overused or misused by analysts and members of the financial community as well as by some in the steel industry–especially regarding the spread between foreign prices and those of the domestic steel mills.