Prices
June 16, 2023
HRC, Prime Scrap Price Spread Narrows Again in June
The spread between hot-rolled coil (HRC) and prime scrap prices narrowed further in June, according to Steel Market Update data.
Both the averages of SMU’s HRC and busheling scrap prices slipped this week.
Our HRC average fell $5 per net ton week-over-week to sit at $930 per ton ($46.50 per cwt) as of Tuesday, June 13.
Meanwhile, after settling, busheling tags decreased $50 per gross ton from May to an average of $460 per gross ton for June. 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 $519 per net ton as of June 16, sinking $131 from $650 in May. (Figure 2). This is the second consecutive month of narrowing after having widened at the start of the year.
By the way, 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 HRC’s premium over busheling scrap as a percentage. HRC prices now carry a 102% premium over prime scrap, down from 117% a month ago.
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
