International Steel Prices
World Export vs. Domestic HRC Price Spread Increases $8 per ton
Written by Brett Linton
July 18, 2014
The world export price for hot rolled bands was at $506 per net ton ($558 per metric ton) according to data released by SteelBenchmarker this past week. The world hot rolled export price is up $2 per ton compared to the report produced in late-June.With an estimated $70 per ton added in order to get the steel to ports in the United States (freight, handling, and trader margin), the additional costs put the theoretical world HRC export price at approximately $576 per ton CIF USA Port (we are hearing actual quotes are closer to $610 per ton).
The latest Steel Market Update hot rolled price average is $670 per ton, up $10 per ton from late-June. The theoretical spread between the world export price and the SMU US HRC price is now $94 per ton ($164 prior to freight and other costs being included), $8 per ton more than late-June but $2 per ton less than one month ago.
The $94 spread represents a significant change from mid-March 2014 when we had a spread of $45 per ton ($115 prior to freight and other costs being included). One year ago the spread was $81 per ton ($151 prior to freight and other costs being included).
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}
Brett Linton
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