• Skip to main content

    Overseas

    Foreign vs. Domestic Hot Rolled Price Comparison

    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. This is especially important now in light of the Section 232 steel tariffs, which are scheduled to be effective as of March 23, 2018.

    What is important to note from our analysis is how far “out of the market” U.S. steel prices will go before the domestic mills risk demand destruction (see AGC article in tonight’s issue) and loss of their customer base, which will move parts production outside of the United States so they can remain competitive with the rest of the world.

    Brett Linton

    Read more from Brett Linton

    Latest in Overseas