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    Overseas

    March 3, 2022

    Foreign vs. U.S. HRC Prices: It's Now Cheaper to Order Domestic

    Written by Brett Linton

    Last year when hot rolled coil prices in the U.S. surged to record highs, foreign steel was hundreds of dollars cheaper, and import orders skyrocketed. Now that U.S. steel prices have come back to earth, foreign steel has lost that competitive advantage. Foreign HRC prices are now approximately $45-108 per ton more expensive than domestic steel, after taking freight costs, trader margins and tariffs into consideration, according to SMU’s latest foreign versus domestic hot rolled steel price comparison.

    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 margins, and other costs can fluctuate, ultimately influencing the true market spread. This compares the SMU U.S. hot rolled weekly index to CRU hot rolled weekly indices for Germany, Italy and Far East 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.

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