International Steel Prices
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2024/06/SMU_ForeignVs.Domestic_2024-0627_Thumbnail-1024x1024.png)
US HRC prices keep slipping, now cheaper than imports
Written by David Schollaert
June 27, 2024
US hot-rolled (HR) coil prices have continued to drift lower, pushing them further below offshore hot band prices on a landed basis.
This week, domestic HR coil tags were $670 per short ton (st) on average, down $15/st vs. last week based on SMU’s latest check of the market on Tuesday, June 25.
Domestic HR coil prices are now 5% less expensive than imports. The premium has widened from -2.1% last week. Stateside hot band is down $175/st from a recent high of $845/st in early April. It now stands at a nine-month low.
In dollar-per-ton terms, US HR coil is now, on average, $33/st cheaper than offshore product (Figure 1). That’s down $14/st on average from last week. The premium has pushed further into negative territory after slipping to parity just two weeks ago.
The charts below compare HR prices in the US, Germany, Italy, and Asia. The left-hand side highlights prices over the last two years, while the right-hand side zooms in to show more recent trends.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2024/06/SMU_ForeignVs.Domestic_2024-0627_Fig1-1024x630.png)
Methodology
This is how SMU calculates the theoretical spread between domestic HR coil prices (FOB domestic mills) and foreign HR coil prices (delivered to US ports): We compare SMU’s US HR coil weekly index to the CRU HR coil weekly indices for Germany, Italy, and East and Southeast Asian ports. This is only a theoretical calculation. Import costs can vary greatly, influencing the true market spread.
We add $90/st to all foreign prices as a rough means of accounting for freight costs, handling, and trader margin. This gives us an approximate CIF US ports price to compare to the SMU domestic HR coil price. Buyers should use our $90/st figure as a benchmark and adjust up or down based on their own shipping and handling costs. If you import steel and want to share your thoughts on these costs, please get in touch with the author at david@steelmarketupdate.com.
Asian HRC (East and Southeast Asian ports)
As of Thursday, June 27, the CRU Asian HRC price was $485/st, down $5/st from the week prior. Adding a 25% tariff and $90/st in estimated import costs, the delivered price of Asian HRC to the US is approximately $697/st. The latest SMU hot rolled average for domestic material is $670/st.
The result: US-produced HRC is theoretically $27/st cheaper than steel imported from Asia. The spread is down $10/st vs. last week, now a swing of $308/st from its seven-month high of $281/st in late December.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2024/06/SMU_ForeignVs.Domestic_2024-0627_Fig2-1024x633.png)
Italian HRC
Italian HR coil prices were down $2/st to roughly $616/st this week. After adding import costs, the delivered price of Italian HR coil is in theory $706/st.
That means domestic HR coil is theoretically $36/st cheaper HR coil imported from Italy. The spread is down $13/st from last week. The domestic hot band price premium over offshore product from Italy has swung by $333/st from a recent high of $297/st just five months ago.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2024/06/SMU_ForeignVs.Domestic_2024-0627_Fig3-1024x633.png)
German HRC
CRU’s German HR coil price inched up $3/st from the week before to $616/st. After adding import costs, the delivered price of German HR coil is in theory $706/st.
The result: Domestic HR coil is theoretically $36/st cheaper than HR coil imported from Germany. The spread is down $18/st week over week (w/w) and $301/st removed from 2023’s widest spread of $265/st.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2024/06/SMU_ForeignVs.Domestic_2024-0627_Fig4-1024x633.png)
Notes: Freight is important in deciding whether to import foreign steel or buy from a domestic mill. Domestic prices are referenced as FOB the producing mill, while foreign prices are CIF the port (Houston, NOLA, Savannah, Los Angeles, Camden, etc.). Inland freight, from either a domestic mill or from the port, can dramatically impact the competitiveness of both domestic and foreign steel. It’s also important to factor in lead times. In most markets, domestic steel will deliver more quickly than foreign steel.
Effective Jan. 1, 2022, Section 232 tariffs no longer apply to most imports from the European Union. It has been replaced by a tariff rate quota (TRQ). Therefore, the German and Italian price comparisons in this analysis no longer include a 25% tariff. SMU still includes the 25% Section 232 tariff on prices from other countries. We do not include any antidumping (AD) or countervailing duties (CVD) in this analysis.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2024/02/SMU_DS_headshot.png-150x150.jpg)
David Schollaert
Read more from David SchollaertLatest in International Steel Prices
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2023/07/CRU-Logo-2023-07-21-at-4.35.41-PM.png)
CRU: Sheet demand weakness abounds globally, US HR coil prices near those elsewhere
Low global sheet demand continued to weigh on prices around the world this week. In the US, mills were forced to remain aggressive to secure orders during this period of demand weakness. And compounded by recent new capacity ramp-ups, has forced US hot rolled (HR) coil prices down closer to levels seen in offshore markets. […]
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2024/06/SMU_CR_ForeignVs.Domestic_2024-0628_Thumbnail.png)
US CR prices move lower, but imports remain cheaper
Offshore cold-rolled (CR) coil remains cheaper than domestic product pricing even as US CR coil prices slip to an eight-month low. Domestic CR coil tags stood at $975 per short ton (st) on average in our check of the market on Tuesday, June 25, down $20/st from the week before. Domestic CR prices are, on […]
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2024/06/SMU_CR_ForeignVs.Domestic_2024-0621_Thumbnail.png)
US CR prices dip, but imports remain cheaper
Offshore cold-rolled (CR) coil prices are cheaper than domestic product despite US CR coil prices ticking lower. Domestic CR coil tags stand at $995 per short ton (st) on average, down $25/st vs. our prior check of the market on Tuesday, June 18. (We will update prices again on Tuesday, June 25.) All told, US […]
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2023/07/CRU-Logo-2023-07-21-at-4.35.41-PM.png)
CRU: Demand weakness continues to weigh on global sheet markets
Demand has remained persistently weak across the globe for sheet steel, weighing on prices. US HR coil prices fell the furthest this week as high-volume, low-priced deals were transacted as mills looked to fill order books and competed with one another amid relative demand weakness. Meanwhile, European prices were also down due to low demand […]