Foreign vs Domestic HRC Price Update: U.S. Still High, But Gap Narrowing

Foreign steel prices continue to tempt U.S. buyers with potential discounts of 24-43% over domestic steel, according to Steel Market Update’s latest comparison of domestic and foreign hot rolled steel prices. Foreign hot rolled steel prices are now theoretically $430-761 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.