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    September 18, 2022

    Hot Rolled vs Scrap Price Spread Inching Back Up

    Written by Brett Linton

    The spread between hot-rolled coil (HRC) and prime scrap prices has changed course in recent weeks, according to Steel Market Update data. Busheling scrap prices declined for the fifth consecutive month in September, while hot-rolled prices have levelled out in recent weeks. Overall, we had seen a shrinking delta between the two products from May through August. After flattening in the last month, the spread has now begun to inch up again. The latest spread is less than 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 $5 per ton last week to $785 per net ton ($39.25 per cwt). HRC prices have increased $15 per ton in the previous four weeks but are down $750 per ton since the start of the year. Prices are also down $1,165 per ton versus levels one year prior. Recall our HRC price peaked around this time last year at $1,955 per ton.

    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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