Ferrous Scrap

HRC vs. prime scrap spread narrows further in June
Written by Ethan Bernard
June 14, 2024
The spread between hot-rolled coil (HRC) and prime scrap prices has narrowed for the second consecutive month, according to SMU’s most recent pricing data.
SMU’s average HRC price dropped this week, and the June price for busheling scrap tumbled from May.
Our average HRC price stood at $710 per short ton (st) as of June 11, down $20 from the prior week.
Meanwhile, busheling tags fell $30 month over month to an average of $380 per gross ton in June. 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 $371/st as of June 14, off $39 from a month earlier (Figure 2). This is the first time it’s dropped below $400 this year.
The chart on the right-hand side below explores this relationship differently: We have graphed HRC’s premium over busheling scrap as a percentage. HRC prices now carry an 87% premium over prime scrap, edging down from 89% a month ago.

By the way, did you know SMU’s Interactive Pricing Tool can show steel and scrap prices in dollars per short ton, dollars per metric ton, and dollars per gross ton?

Ethan Bernard
Read more from Ethan BernardLatest in Ferrous Scrap

SMU Scrap Survey: Current Sentiment rises as future Sentiment falls
SMU’s current Scrap sentiment index increased this month while future sentiment declined, according to our latest ferrous scrap survey data.

September scrap buying underway, busheling down
The scrap market in the US for September shipment has started to settle, with busheling seen down so far.

Ferrous export market seeks direction
The export market is looking for direction based upon the latest scrap purchases from Northern Europe by Turkish steelmakers. The sentiment was looking bearish, but sellers may see it differently.

How will scrap market handle fall outages?
The question among scrap players is can the market hold its level in the face of coming mill outages? Opinions are divided on the subject.

Sims’ long-term outlook bright, sees tariffs boosting US scrap demand
Australia-based global recycler Sims Ltd. has a rosy long-term outlook, while the company said tariffs are supporting US demand for ferrous scrap.