World Export vs. Domestic HRC Price Spread Unchanged

With an estimated $70 per ton added in order to get the steel to ports in the United States (freight, handling, and trader margin), the additional costs put the true world export price at approximately $570 per ton CIF USA Port.

The latest Steel Market Update hot rolled price average is $675 per ton, unchanged from two weeks ago and up $5 per ton compared to mid-July. The theoretical spread between the world export price and the SMU US HRC price is $105 per ton ($175 prior to freight and other costs being included), unchanged over two weeks ago and $11 per ton more than mid-July. This remains the highest price spread since mid-May 2014.

The $105 spread represents a significant change from mid-March 2014 when we had a spread of $45 per ton ($115 prior to freight and other costs being included). One year ago the spread was $67 per ton ($137 prior to freight and other costs being included).

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 either logging in or navigating the website, please contact our office at 800-432-3475 or info@SteelMarketUpdate.com.

{amchart id=”130″ Domestic vs. Foreign Hot Rolled Pricing- Steel Benchmarker World China Europe}