Ferrous Scrap

HRC vs. busheling spread narrows in August

Written by Ethan Bernard & Stephen Miller

August 14, 2025

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

SMU’s average HRC price as of Aug. 12 was $820 per short ton (st) FOB mill, east of the Rockies. That’s down $10 from the previous week and $35 from a month earlier.

Meanwhile, busheling tags in August were flat for the third consecutive month, averaging $425 per gross ton (gt).

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 $441/st as of Aug. 12. That’s off $50/st from a month earlier (Figure 2). This comes after two consecutive months where the spread widened.

What’s going on?

The narrowing of the HRC-busheling spread is a result of declining steel prices. At the same time, ferrous scrap grades, busheling included, have remained level.

Most players in the scrap arena are calling for a sideways market again in September.

Unless HRC prices can stabilize, the spread will continue to narrow, especially as we enter Q4 when scrap prices typically firm up seasonally.

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 hold a 93% premium over prime scrap, down from 105% a month ago.

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.

Stephen Miller

Stephen Miller started his career in the scrap metal industry in 1978 at Luria Brothers in Cleveland. Over the last 40+ years, he has worked in all capacities in the trading business. He has had positions in both domestic and international scrap trading. In addition to scrap, Miller was at the forefront of the pig iron trade and established a pig iron distribution company under the name of Ferrosource, Inc. Most recently, Miller has concentrated on the scrap export market and regularly does consulting for several companies in the industry.