Spreads rose to record highs
The primary reason the United States is the top steel import destination is the difference between US and international prices. Historically, US steel prices have been higher than international steel prices.
The spread between US and international steel prices widened to record highs in 2Q16. Higher spreads between US and international prices prompted US steel buyers to actively scout international markets. As US steel imports started gradually rising, US steel mills were left with little option but to cut their base selling prices.
