Scrap Prices North America

HRC vs. busheling spread narrows in January

Written by Ethan Bernard

January 17, 2024

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

SMU’s average HRC price fell this week, as the average price for busheling scrap also slipped from December.

Our average HRC price stands at $1,025 per net ton this week, off $25/ton from a week prior.

Meanwhile, busheling tags dropped $10 per gross ton month over month to an average of $490/gt. 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 $588/net ton as of Jan. 16, down $6 from a month earlier (Figure 2). This marks the first time the spread has narrowed after three consecutive months of widening.

By the way, did you know SMU’s 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 109% premium over prime scrap, up from 108% a month ago.

Ethan Bernard

Ethan Bernard is managing 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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