Ferrous Scrap

HRC vs. prime scrap spread widens in June
Written by Ethan Bernard & Stephen Miller
June 11, 2025
The price spread between hot-rolled coil (HRC) and prime scrap widened slightly in June after narrowing for the two previous months, according to SMU’s most recent pricing data.
SMU’s average HRC price as of June 10 stands at $860 per short ton (st) FOB mill, east of the Rockies. That’s a $15/st jump from the previous week and the same time last month.
June busheling tags, however, came in sideways vs. May, averaging $425 per gross ton.
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 $481/st as of June 10. That’s an increase of $15/st from a month earlier (Figure 2). It last widened in March when it stood at $526/st.
What’s going on?
Looking ahead to July, scrap prices are mostly expected to stay sideways.
On the other hand, HRC prices are set to increase further as the tariff increase has stirred pricing. This should continue to widen the spread.
HRC premium as a percentage
The graph on the right-hand side of Figure 2 shows the spread relationship differently: We have graphed HRC’s premium over busheling scrap as a percentage. HRC prices now have a 102% premium over prime scrap, up from 99% a month ago.


Ethan Bernard
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Stephen Miller
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