Last week, SteelOrbis reported that US import HRC in the domestic market from Korea, Turkey, Egypt and Germany was being offered in a range of $38.50-$39.00 cwt. ($849-$860/mt or $770-$780/nt), DDP loaded truck in US Gulf coast ports. This week, traders are reporting that import offer pricing has come down by $1.00 cwt. ($22/mt or $20/nt) from last week’s range.
Korea, sources note, are driving that charge. “You need to remember, Korea has quotas, not duties, so they’re wanting to sell as much as they can. Considering what hot rolled is being sold at in other places in the world, the Koreans are thrilled to be selling to the US for $37.50 cwt. ($827/mt or $750/nt). They’re making a killing.”
But when you consider that US domestic HRC pricing is still trending at $44-$46 cwt. ($970-$1014/mt or $880-$920/mt), ex-mill, concern is growing over the downward pricing pressure the domestic market will face once import material starts to arrive at the docks.
“There are so many factors that are going to play into what may or may not happen to the market by the end of the year, it’s hard to make any solid predictions,” another source noted. “If things stay as they are, we could see a $5.00 cwt. ($110/nt or $100/nt) softening in HRC prices, but if Congress is successful in rolling back the Section 232 tariffs, all gains that have been seen in pricing this year are likely to be lost.”