World Export vs. Domestic HRC Price Spread Down $10

The $104 spread represents a significant change from mid-March 2014 when we had a spread of $45 per ton ($155 prior to freight and other costs being added).

One year ago the spread was $80 per net ton prior to freight, handling and traders margin which we calculate to average about $70 per ton. So, at this time last year, there was no incentive to buy foreign hot rolled coil.

However, actual steel offers on hot rolled coil are relatively limited as many traders are shying away from Russian steel at this moment, and the actual CIF Duty Paid FOB Port offers are around $620 per net ton (selling prices). This puts the actual spread at $55 per ton based on our index and about $10 per ton higher for Platts which is at the high end of the range at the moment.

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 eiher 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}