Market Data
US Prime Scrap, HRC Spread Narrows Further
Written by Ethan Bernard
September 15, 2023
The spread between hot-rolled coil (HRC) and prime scrap prices continued to narrow this month, according to SMU’s most recent pricing data.
SMU’s average HRC price dropped this week along with the average price for busheling scrap this month.
Our HRC price stood at $690 per ton ($34.50 per cwt) as of Sept. 12, down $20 per ton from the previous week, and marking the lowest point for HRC prices so far this year.
Busheling tags tumbled $50 per gross ton in September vs. August to an average of $400 per gross ton. 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 $333 per net ton as of Sept. 14, down $60 from a month prior. (Figure 2). This is the narrowest spread since January.

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 73% premium over prime scrap, down from 77% a month ago.

Ethan Bernard
Read more from Ethan BernardLatest in Market Data
HARDI: Galv demand improves in October, higher prices expected in new year
Participants on this month’s Heating Air-Conditioning & Refrigeration Distributors International (HARDI) Sheet Metal/Air Handling Council call expect galvanized steel base prices to firm up in the first quarter of 2026.
AISI: Raw steel mill output stabilizes
Domestic mill production inched higher last week, according to the latest figures released by the American Iron and Steel Institute (AISI). Prior to the start of this month, raw output had remained historically strong since June.
Steel market chatter this week
What's on steel buyers' minds this week? We asked about market prices, demand, inventories, tariffs, imports, and other evolving market trends. Read on for buyers' comments in their own words...
SMU flat-rolled market survey results now available
SMU’s latest steel buyers market survey results are now available on our website to all premium members.
SMU Survey: Current Sentiment sinks to lowest level since May 2020
SMU’s Steel Buyers’ Sentiment Indices both fell this week, with Current Steel Buyers’ Sentiment notching the lowest reading since May 2020.
