International Steel Prices
October 22, 2020
Foreign HRC Price Update: U.S. vs. Germany, Italy and Far East Asia
Written by Brett Linton
Our latest foreign vs domestic hot rolled steel price comparison shows that U.S-producers continue moving closer to losing their price advantage over foreign imports, according to SMU and CRU indices released this week. The price differentials between domestic HRC compared to foreign imports had widened through mid-August to reach record highs, but have since declined between 65 and 95 percent. The latest Far East Asian HRC prices are just $10 higher than domestic prices after taking freight costs, trader margins and tariffs into consideration.
The following calculation is used by Steel Market Update to identify the theoretical spread between foreign hot rolled steel prices (delivered to U.S. ports) and domestic hot rolled coil prices (FOB domestic mills). This is only a “theoretical” calculation as freight costs, trader margin and other costs can fluctuate, ultimately influencing the true market spread. We are comparing the SMU U.S. hot rolled weekly index to CRU hot rolled weekly indices for Germany, Italy and the Far East (East and Southeast Asian ports).
