Overseas
December 30, 2014
World vs. Domestic HRC Price Spread Shrinks
Written by Brett Linton
The spread between world hot rolled export pricing and that of the domestic average here in the United States is shrinking based on our recent analysis.
The following is a calculation used by Steel Market Update in order to analyze the spread between world hot rolled export prices and domestic (USA) hot rolled prices. SMU compares the world hot rolled export price using a range of adders for freight, handling, trader margin, etc. This is then compared to the spot (FOB Mill) domestic hot rolled price using the SMU Hot Rolled Index average for this week with the result being the spread between domestic and world HRC pricing.
