Raw Material Prices
US Prime Scrap, HRC Spread Narrows Further
Written by Ethan Bernard
September 15, 2023
The spread between hot-rolled coil (HRC) and prime scrap prices continued to narrow this month, according to SMU’s most recent pricing data.
SMU’s average HRC price dropped this week along with the average price for busheling scrap this month.
Our HRC price stood at $690 per ton ($34.50 per cwt) as of Sept. 12, down $20 per ton from the previous week, and marking the lowest point for HRC prices so far this year.
Busheling tags tumbled $50 per gross ton in September vs. August to an average of $400 per gross ton. Figure 1 shows price histories for each product.

After converting scrap prices to dollars per net ton for an equal comparison, the differential between HRC and busheling scrap prices is $333 per net ton as of Sept. 14, down $60 from a month prior. (Figure 2). This is the narrowest spread since January.

By the way, did you know our Interactive Pricing Tool has the capability to show steel and scrap prices in dollars per net ton, dollars per metric ton, and dollars per gross ton?
Figure 3 explores this relationship in a different way – we have graphed HRC’s premium over busheling scrap as a percentage. HRC prices now carry a 73% premium over prime scrap, down from 77% a month ago.


Ethan Bernard
Read more from Ethan BernardLatest in Raw Material Prices

CRU: Ramaco chief takes bullish stance in bear market
While overall steel demand remains weak in the near term, there are reasons to expect metallurgical coal prices will increase over the course of the year, Ramaco says.

Pig iron market picks up speed after March scrap settle
“The next months are going to be good ones for pig iron producers," according to one source.

Miller on Raw Materials: Pig iron tags move up, N. Europe scrap imports to US resume
SMU's Stephen Miller provides an update on the raw materials sector.

Miller on Raw Materials: US pig iron market heats up
There has been considerable upward movement in the US prices paid for future shipment of Brazilian-produced pig iron over the last week.

Miller on scrap: Pig iron cost vs. #1 Busheling
A comparison of the current cost of pig iron vs. busheling scrap.