Scrap Prices North America
HRC vs. busheling scrap spread narrows in February
Written by Ethan Bernard
February 15, 2024
The spread between hot-rolled coil (HRC) and prime scrap prices narrowed further this month, according to SMU’s most recent pricing data.
SMU’s average HRC price dropped this week, while the average price for busheling scrap also slumped from January.
Our average HRC price stands at $940 per short ton (st) as of Feb. 13, off $ $40/st from a week prior.
Meanwhile, busheling tags decreased $35 per gross ton month over month to an average of $455/gt in February. Figure 1 shows price histories for each product.
After converting scrap prices to dollars per short ton for an equal comparison, the differential between HRC and busheling scrap prices is $534/st as of Feb. 15, down $54 from a month earlier (Figure 2). This is the narrowest spread since October of last year when it stood at $338/st.
By the way, did you know SMU’s Interactive Pricing Tool has the capability to show steel and scrap prices in dollars per short 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 107% premium over prime scrap, down from 109% a month ago.
Ethan Bernard
Read more from Ethan BernardLatest in Scrap Prices North America
HRC vs. scrap spread widens but remains low
The price spread between hot-rolled (HR) coil and prime scrap widened slightly in August but remains in territory not seen since late 2022, according to SMU’s most recent pricing data.
RMU: The most underappreciated scrap grade
Over the last several years, I have noticed widening spreads between #1 Heavy Melting Steel (ISRI 201) and Shredded (ISRI 210,211), as well as Plate & Structural (ISRI 232).
Domestic scrap tags flat in April
April scrap prices came in sideways in the US, sources told SMU.
RMU: Interest rates, weather hit Radius Recycling’s earnings
Low manufacturing activity and higher interest rates took a toll on Radius Recycling’s profits during the Oregon-based company’s most recent quarter. Radius reported a net loss of $34 million, or $1.19 per share, during its fiscal second quarter. In the previous quarter, Radius saw a net loss of $18 million, or 64 cents per share.
RMU: Northern buyers enter April scrap market sideways
Several large buyers in the North came into the market on a sideways basis from prices paid in March. The development comes after recent speculation about what prices US-based steelmakers would pay for scrap for April shipments.