Steel Products Prices North America
February 27, 2014
Spread Between Domestic & World HRC Pricing Shrinks
Written by Brett Linton
A few weeks back Steel Market Update published an article on World Export Price vs. Domestic HRC Pricing. Here is an update with a comparison of current prices.
The latest SMU HR price was at $635 per net ton (NT) average, and using the world export price as reported by SteelBenchmarker plus $70 per ton in freight, we can calculate the true world export price to the customer at $578 per NT. This puts the spread around $47 per ton, much less than the $75 per ton reported in early February when domestic was $655 compared to $580 world export price delivered to US ports (depending on freight the spread could be slightly higher).
At $47 to $60 per ton the spread is no longer attractive to most domestic buyers unless there is a port freight advantage vs. domestic mill.
The spread between the domestic and world export price with freight peaked at $93 per NT on November 26th, 2013. Since our last article, the spread has fallen from $75 to $57 per NT.
