Prices
July 20, 2022
Hot Rolled vs Scrap Price Spread Narrows
Written by Brett Linton
The spread between hot-rolled coil (HRC) and prime scrap prices is back on the downward trend seen prior to the Russia-Ukraine war, according to Steel Market Update data through this week. The HRC-scrap spread peaked last September, falling to an 18-month low in early March and briefly rebounding through May. The latest spread is nearly a third of what it was this time last year but is still higher than pre-pandemic levels.
Our hot rolled coil price average fell $35 per ton this week to $875 per net ton ($43.75 per cwt), and is now at a 19-month low. HRC prices have declined $165 per ton in the last month, down $660 per ton since the start of the year. Compared to one year prior, hot rolled is down $975 per ton. 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.
