Steel Products Prices North America
April 14, 2015
Price Spread Suggests Foreign Steel Imports Should Break Down in Coming Months
Written by John Packard
One of the questions asked during the flat rolled steel market analysis we conduct twice per month is regarding the spread between domestic and foreign steel pricing. When spreads are large, as they were for most of calendar year 2014, then you can expect a surge in imported steel. As the spread subsides the need to go off-shore diminishes and foreign steel imports wane.
We find the following graphic to be especially telling when trying to understand both the surge in imports and then to project where imports will be over the coming months as most foreign steel lead times run from 3 to 5 months before the steel arrives in the U.S.
