World Export vs. Domestic HRC Price Spread down $8 per ton

That is not the case this year and hot rolled is not the only product being impacted by spreads exceeding $100 per ton. In the past, when dealing with foreign traders U.S. buyers of steel would require a spread of at least $60 per ton. However, since 2004, 2006 and 2008/2009 when flat rolled steel price volatility went off the charts, steel buyers began holding back purchases of foreign steel until the spreads hit $100 per ton. At $100 per ton most buyers are comfortable that their inventories will not get burned should U.S. steel prices fall during the period of time it took to deliver the foreign orders.

Below is an interactive graph which you can use to compare world export prices against the SMU domestic HRC average price. We also have included a comparison with freight and traders’ costs added which gives you a better indication of the true price spread (assuming the U.S. offers are not being bumped up by the foreign producing mills or trading companies). You will need to read this article on our website in order to see and interact with the graphic. If you need assistance with either logging in or accessing the article in the format you wish to read it in please contact our office: 800-432-3475 or info@SteelMarketUpdate.com.

{amchart id=”130″ Domestic vs. Foreign Hot Rolled Pricing- Steel Benchmarker World China Europe}