Prices
August 14, 2022
Hot Rolled vs Scrap Price Spread Narrows
Written by Brett Linton
The spread between hot-rolled coil (HRC) and prime scrap prices continues to narrow, according to Steel Market Update data. Busheling scrap prices have declined each of the last four months, as have hot-rolled prices – but at a greater rate than scrap. The result: a shrinking delta between the two products. The latest spread is one-third what it was this time last year, but it is still higher than pre-pandemic levels.
Our hot rolled coil price average rose $15 per ton last week to $820 per net ton ($41.00 per cwt), the first week-over-week increase seen since mid-April. HRC prices had declined $90 per ton in the previous four weeks and are down $715 per ton since the start of the year. Compared to this time last year, hot rolled is down $1,080 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.
