Foreign vs. Domestic HRC Price Analysis: Strong Foreign Advantage

As domestic hot rolled steel prices remain above $1,900 per ton, cheaper foreign steel imports continue to tempt U.S. buyers with potential discounts of 21-44%, according to Steel Market Update’s latest foreign versus domestic hot rolled steel price comparison. Foreign hot rolled steel prices are now theoretically $408-843 per ton cheaper than domestic steel, 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 margins, and other costs can fluctuate, ultimately influencing the true market spread. This compares the SMU U.S. hot rolled weekly index to CRU hot rolled weekly indices for Germany, Italy, and Far East Asian ports.