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Prime Scrap, HRC Spread Increases in October

Written by Ethan Bernard

October 13, 2023

The spread between hot-rolled coil (HRC) and prime scrap prices widened slightly this month, according to SMU’s most recent pricing data.

SMU’s average HRC price increased this week, while the average price for busheling scrap this month was flat.

Our average HRC price stood at $695 per ton ($34.75 per cwt) as of Oct. 10, up $25 per ton from the previous week.

Busheling tags remained level in October vs. September at 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 $338 per net ton as of Oct. 13, up $5 from a month earlier. (Figure 2). As recently as the middle of April it stood at $667.

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 74% premium over prime scrap, up from 73% a month ago.

Ethan Bernard

Ethan Bernard is a reporter and editor for Steel Market Update. He previously worked for American Metal Market as a copy editor in the New York office for two years starting in 2008. Later, he copy edited AMM’s monthly magazine on a freelance basis from 2015 until 2017. With experience in financial copywriting and textbook publishing, he holds a BA in Comparative Literature from UC Berkeley, and an MFA. in Creative Writing from New York University. He can be reached at ethan@steelmarketupdate.com or 724-759-7871.

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