Overseas
May 25, 2017
Foreign vs. Domestic Hot Rolled Price Comparison in May 2017
Written by Brett Linton
The following calculation is used by Steel Market Update to identify the theoretical spread between foreign hot rolled steel import prices (delivered to USA ports) and domestic (USA) hot rolled coil prices (FOB Domestic mills). We want our readers to be aware that this is only a “theoretical” calculation as freight costs, trader margin and other costs can fluctuate ultimately influencing the true market spread.
Our primary numbers for this exercise are from Platts as we compare European HRC (FOB Ruhr), Turkey HRC export pricing (FOB Turkey), and Chinese HRC export prices (FOB Chinese port). Be aware that Chinese hot rolled is not available to the U.S. market so the Chinese spread is nothing more than an exercise of what if… SteelBenchmarker is the secondary data provider of foreign hot rolled coil prices and is noted further down in this article.
