Steel Products Prices North America
February 11, 2022
Hot Rolled Coil vs Busheling Scrap Prices: Spread Narrowing
Written by Brett Linton
According to the latest Steel Market Update data, the spread between hot rolled coil prices and prime scrap is slowly shrinking from the September 2021 peak. The latest spread is in line with levels seen in early-2021 but two times higher than pre-pandemic spreads.
Last week, the SMU hot rolled price average declined for the 18th consecutive week to $1,190 per net ton ($59.50 per cwt), the lowest price seen in exactly one year. Recall our HRC price average peaked last September at $1,955 per ton, with the upper end of our range topping out at $2,000 per ton. Busheling scrap prices settled last week, down $10 per gross ton in February to $530 per gross ton, following a $80 per ton drop in January. July and August 2021 saw record busheling prices, with prices climbing to $670 per gross ton for those two months.
