SMU Community Chat
HRC, Prime Scrap Price Spread Widens Further in March
March 22, 2023
The spread between hot-rolled coil (HRC) and prime scrap prices has widened significantly in March as both products saw large price gains, according to Steel Market Update data.
With a flurry of recent price increases, our hot-rolled coil price average jumped $25 per ton week over week to $1,140 per ton ($57 per cwt) as of March 21.
March scrap prices settled late last week, with busheling prices rising $90 per gross ton to $550 per ton from February. Figure 1 shows price histories for each product.
After converting scrap prices to dollars per net ton for an equal comparison, the differential between HRC and busheling scrap prices is $649 per net ton through March 21, up $235 from $414 last month (Figure 2). This represents the widest spread since late-May 2022.
PSA: Did you know our Interactive Pricing Tool has the capability to show steel and scrap prices in dollars per net ton, dollars per metric ton, and dollars per gross ton?
Figure 3 explores this relationship in a different way – we have graphed the spread between HRC and busheling scrap prices as a percentage premium over scrap prices. HRC prices now carry a 107% premium over prime scrap, increasing from 79% a month earlier, and the first time the premium has topped 100% since October of last year.
This comparison was inspired by reader suggestions. If you would like to chime in with topics you want us to explore, reach out to our team at news@steelmarketupdate.com.
By Ethan Bernard, ethan@steelmarketupdate.com
Latest in SMU Community Chat
Join SMU on Wednesday for a Community Chat with Bilstein Cold Rolled Steel CEO Brent Wilson
Bilstein Cold Rolled Steel LLC CEO Brent Wilson will be the featured speaker on the next SMU Community Chat webinar on Wednesday, April 30, at 11 am ET. You can register here. Reminder: The live webinar is free to attend. A recording will be available only to SMU subscribers. About Bilstein and Wilson Bilstein Cold […]
Join us for the April 9 Community Chat with Algoma Steel CEO Michael Garcia
During the chat, we’ll discuss trends in the North American sheet and plate markets, as well as the unique aspects of the Canadian market. We’ll talk all thing tariffs — and the timing couldn’t be better in the wake of Liberation Day on April 2.
SMU Community Chat: Alan Price unpacks latest in rapidly shifting tariff terrain
International trade attorney Alan Price sat down with SMU to unpack the latest developments in Trump’s tariff merry-go-round.
Join SMU for a Community Chat on March 13 With Wiley Trade Attorney Alan Price
Wonder what the fallout from all the Trump tariffs might be? A manufacturing renaissance? A post-WWII order in ashes? Or something a little more down the middle? Then register for our next Community Chat on Thursday, March 13 at 11 am ET. Yes, you read that correctly, SMU is shattering precedent by holding a Community Chat on a day that is not Wednesday. Our featured speaker will be Alan Price, a leading trade attorney at Wiley and someone whose columns you read regularly in SMU.
SMU Community Chat: CRU’s Josh Spoores looks out over the Trump 2.0 battlefield
SMU Community Chat with CRU's Josh Spoores.