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
Read more from Ethan BernardLatest in Scrap Prices North America

Busheling and shredded tags drop, widening HRC vs. prime scrap spread
US scrap prices fell on busheling and shredded in October, while HMS remained flat, market sources told SMU.

SMU successfully completes IOSCO review
SMU has successfully completed an external review of all our prices. The review has concluded that they algin with principles set by the International Organization of Securities Commissions (IOSCO).

October scrap market settles with bush down $20, shred down $10
Most mills sought a drop of $20-40 per gross ton (gt) in busheling prices and a $20/gt dip for shredded and HMS. Despite efforts to buy cheaper, the busheling price settled at down only $20/gt.

HRC vs. busheling spread widens again in July
The price spread between prime scrap and hot-rolled coil widened marginally again in July.

US ferrous scrap market lands flat in July
The US ferrous scrap market settled sideways in July.