SMU Data and Models
HRC vs. CRC price spread jumps in second week of new year
Written by Laura Miller
January 12, 2024
The spread between hot-rolled coil (HRC) and cold-rolled coil (CRC) prices jumped during the week of Jan. 9 as cold rolled tags continued to rise while hot rolled tags held steady.
The spread declined slightly from $265 per net ton at the end of December to $240/ton in the first week of January. As of Jan. 9, CRC’s premium over HRC rose to $280/ton.
We arrived at that latest figure using the following analysis based on SMU’s weekly pricing data.
Figure 1 below shows SMU’s average HRC and CRC base prices as of Jan. 9.
The average HRC price was $1,045 per net ton in the second week of 2024. That was unchanged from the prior week. HRC prices have risen, on average, just $25/ton, or 2.5%, since the beginning of December.
CRC prices, meanwhile, rose by $40/ton week on week to $1,325/ton on average during the week of Jan. 9. The average cold rolled price has risen 6% from the start of December.
That puts the spread between HRC and CRC prices at $280/ton as of Jan. 9. The spread rose by $40/ton from the previous week and is $50/ton higher than at December’s start.
As Figure 2 shows, the HRC vs. CRC price spread soared in 2022 and then rapidly declined at year’s end. In 2023, the spread fluctuated while generally trending upwards and then rose quickly to end the year.
The price spread as of Jan. 9 is the highest it’s been since the beginning of November 2022.
Figure 3 shows the CRC premium over HRC as a percentage of the HRC price.
While cold rolled’s percentage premium over hot rolled took a dive to start 2023, the premium was on the rise during the second week of 2024.
The premium was 123% at both the start of December and during the first week of January. It increased to 127% as of Jan. 9.
You can chart historical HRC and CRC prices using SMU’s interactive pricing tool on our website.
Laura Miller
Read more from Laura MillerLatest in SMU Data and Models
SMU Survey: Sheet and plate lead times flatten out
Sheet and plate lead times held steady this week, according to buyers responding to the latest SMU market survey. This week we saw little change from mid-April levels, with just one product (Galvalume) showing any significant movement.
SMU Survey: More mills willing to deal on sheet prices, less so on plate
Nearly two thirds of the steel buyers who responded to this week’s SMU survey say domestic mills are negotiable on spot prices. This increasing flexibility marks a significant shift from the firmer stance mills held in recent months.
SMU Survey: Sheet lead times ease further, plate hits one-year high
Steel buyers responding to this week’s SMU market survey report a continued softening in sheet lead times. Meanwhile, plate lead times have moderately extended and are at a one-year high.
SMU Survey: Buyers report more price flexibility from mills
Nearly half of the steel buyers responding to this week’s SMU market survey say domestic mills are showing increased willingness to negotiate pricing on new spot orders. This marks a significant shift from the firmer stance mills held in prior weeks.
SMU Survey: Buyers’ Sentiment Indices fall
Current Sentiment Index dropped six points to +42 this week compared to two weeks earlier. It has fallen in every successive survey since reaching a 2025 high of +66 on Feb. 19.