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    June 17, 2022

    HRC-Scrap Spread Shrinking as Prices Decline

    Written by Brett Linton

    The spread between hot-rolled coil (HRC) and prime scrap prices is resuming the downward trend seen prior to the Russia-Ukraine war, according to the latest Steel Market Update data. The HRC-scrap spread reached an 18-month low in early March. The latest spread, calculated through June 14, is less than half what it was this time last year but is still higher than pre-pandemic levels.

    The SMU hot rolled coil price average fell $90 per ton to $1,100 per net ton ($55.00 per cwt) as of last Tuesday, and is now at a 14-week low. This was the largest week-over-week decline in steel prices since mid-February. Recall our HRC price peaked last September at $1,955 per ton, gradually falling to a low of $1,000 per ton in early-March. HRC prices then rapidly rose following the Russia-Ukraine war to $1,480 per ton in mid-April.

    Brett Linton

    Brett Linton is a digital operations analyst for Steel Market Update, where he began his career. Linton has been in the steel industry since 2010. He has held roles as a category manager and strategic insights director at Reibus before returning to SMU in 2024. He is a graduate of The University of North Georgia with a degree in Finance and Accounting. Brett can be reached at brett@steelmarketupdate.com or 724-314-0179.

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