US domestic HRC prices are still holding at $44-$46 cwt. ($970-$1014/mt or $880-$920/nt), ex-mill, but sources close to SteelOrbis say that multiple offshore offers, which are being heard between $38.50-$39.00 cwt. ($849-$860/mt or $770-$780/nt), DDP loaded truck in US Gulf coast ports, are raising more than a few eyebrows.
“Korea is leading the pack on price,” a trader source said, adding that Turkish, Egyptian and German HRC pricing “is not far behind.”
US DOC license data for the month of June reflects import Korean HRC tonnages were calculated at 31,465 mt, while Turkish, Egyptian and German HRC tonnages were recorded at 3,714 mt, 2,808 mt and 9,161 mt, respectively.
“Even with the 25 percent tariff, offshore mills are making quite a bit of money by selling to the US,” another source said. “The current market is great if you’re a seller.”
The question as to how much downward pricing pressure offshore material will place on US pricing once it arrives at the docks has yet to be known, but market players throughout the US agree that some sort of correction is likely to happen.