Ferrous Scrap

HRC vs. busheling spread narrows slightly in October

Written by Ethan Bernard

October 18, 2024

The price spread between hot-rolled coil (HRC) and prime scrap narrowed marginally in October, according to SMU’s most recent pricing data.

SMU’s average HRC price edged down during the week, while the October price for busheling scrap increased.

Our average HRC price was $690 per short ton (st) as of Oct. 15, down $5 from the previous week.

At the same time, busheling tags increased to an average of $405 per gross ton in October, up $10 from September. 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 was $328/st as of Oct. 17, off $4 from a month earlier (Figure 2). While the spread has widened in the past two months, it hasn’t touched $400 since May.

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 carry a 70% premium over prime scrap, down from 73% 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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