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    Analysis

    August 13, 2026

    HRC vs. busheling spread continues to widen in August

    Written by Ethan Bernard & Stephen Miller

    The spread between domestic hot-rolled coil and prime scrap prices widened again in August, a trend that started nearly a year ago. This is the widest spread since January 2022.

    SMU’s average HRC price was $1,180 per short ton (st) FOB mill, east of the Rockies, as of Tuesday, Aug. 11. That’s flat from the previous week but a $20/st increase from a month earlier.

    Meanwhile, busheling averaged $457.50 per gross ton (gt) in August, off $5 from July.

    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 $772/st as of Tuesday, up $25/st from a month earlier. The last time it was higher was in January 2022 when it stood at $943/st (Figure 2).

    What’s going on?

    It seems every month the spread continues to widen. The fact remains that #1 Busheling prices have not increased for the past three months. As long as HRC keeps rising, the spread will keep increasing.

    Scrap prices are expected to stay flat going into Q4. After this, scrap prices are likely to rise as winter and the holidays approach. This will be the first chance to see a narrowing spread, assuming HRC prices don’t outpace anticipated increases in #1 Busheling.

    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 158% premium over prime scrap vs. 151% 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.

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    Stephen Miller

    Stephen Miller started his career in the scrap metal industry in 1978 at Luria Brothers in Cleveland. Over the last 40-plus 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.

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