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| US hot-rolled coil |
Rising Domestic HRC Prices Drive Import Considerations
US hot-rolled coil (HRC) buyers face record-high domestic prices and extended lead times. As a result, they increasingly explore imports to maintain supply. However, US tariffs imposed in March and June 2025 have constrained foreign steel availability. Consequently, buyers struggle to secure timely shipments from Canada, Mexico, and Asia. US HRC spot price rose to $964.25/short ton by late January 2026, highlighting the domestic tightness.
Limited Spot Availability and Price Floors Pressure Buyers
Meanwhile, US mills prioritize contract commitments over spot supply, reducing immediate HRC availability. Operating rates averaged 76% in January 2026, slightly higher than last year, but spot allocations remain limited. Some mills implemented a $950/st spot price floor, further restricting market access. Lead times expanded to 6.4 weeks, reflecting the scarcity in immediate deliveries. Consequently, buyers face elevated costs and logistical challenges even for small spot purchases.
Imports Gain Appeal Amid Domestic Constraints
In contrast, overseas HRC offers from southeast Asia and Turkey are up to $100/st cheaper than domestic prices. However, long delivery times delay relief, pushing buyers to diversify sourcing strategies. As domestic mills extend lead times, import consideration shifts from speculative cost savings to reliable inventory management. Therefore, US buyers cautiously return to the global market to hedge against prolonged domestic tightness.
ScrapInsight Commentary
US HRC markets reflect persistent domestic tightness, leading buyers to reconsider imports despite tariffs. Spot shortages and price floors will likely maintain elevated prices in early 2026. This dynamic reinforces the need for diversified sourcing strategies and could encourage more structured import contracts.
