Environment and Energy
December 22, 2022
Domestic Hot Rolled Prices Maintain Edge Over Imports
Written by Brett Linton
Prices of imported hot-rolled coil (HRC) remain higher than domestic steel, according to Steel Market Update’s latest foreign vs. domestic price analysis. US HRC is approximately 2–12% cheaper than foreign prices this week, after consideration of freight costs, trader margins and any applicable tariffs. This is the eighth consecutive week domestic prices have been cheaper than foreign prices for all tracked regions. HRC prices increased across the board week over week, with the average spread slightly rising from $51 per ton last week to $53 per ton this week.
SMU uses the following calculation to identify the theoretical spread between foreign HRC prices (delivered to US ports) and domestic HRC prices (FOB domestic mills): Our analysis compares the SMU US HRC weekly index to the CRU HRC weekly indices for Germany, Italy, and Far East Asian ports. This is only a theoretical calculation because costs to import can vary greatly and often fluctuate, which influences the true market spread.
