Prices
July 14, 2023
Prime Scrap, HRC Price Spread Narrows Further in July
The spread between hot-rolled coil (HRC) and prime scrap prices continued to narrow in July, according to Steel Market Update data.
SMU’s average HRC price rose this week, while busheling scrap tags fell.
Our HRC average price rose $10 per net ton week over week to $890 per ton ($44.50 per cwt) as of Tuesday, July 11.
Busheling tags, however, decreased $15 per gross ton from June to an average of $445 per gross ton for July. 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 $493 per net ton as of July 14, off $26 from June. (Figure 2). This is the third consecutive month of narrowing, and the first month it’s dipped below $500 since February.
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 100% premium over prime scrap, falling from 102% 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
