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

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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