Domestic vs Foreign HRC Prices: Slipping Domestic Advantage?

This week’s comparison of foreign and domestic hot rolled prices shows that the large price advantage held by U.S-producers over foreign imports is rapidly loosing steam, according to the latest SMU and CRU indices. The price differentials between domestic HRC compared to foreign imports had widened over the last few months to reach record highs in mid-August, but have since declined 35-61 percent.

The following calculation is used by Steel Market Update to identify the theoretical spread between foreign hot rolled steel prices (delivered to U.S. ports) and domestic hot rolled coil prices (FOB domestic mills). This is only a “theoretical” calculation as freight costs, trader margin and other costs can fluctuate, ultimately influencing the true market spread. We are comparing the SMU U.S. hot rolled weekly index to CRU hot rolled weekly indices for Germany, Italy and the Far East (East and Southeast Asian ports).

Brett Linton

Brett Linton is a digital operations analyst for Steel Market Update, where he began his career. Linton has been in the steel industry since 2010. He has held roles as a category manager and strategic insights director at Reibus before returning to SMU in 2024. He is a graduate of The University of North Georgia with a degree in Finance and Accounting. Brett can be reached at brett@steelmarketupdate.com or 724-314-0179.

Brett Linton

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