Steel Products Prices North America
June 17, 2022
HRC-Scrap Spread Shrinking as Prices Decline
Written by Brett Linton
The spread between hot-rolled coil (HRC) and prime scrap prices is resuming the downward trend seen prior to the Russia-Ukraine war, according to the latest Steel Market Update data. The HRC-scrap spread reached an 18-month low in early March. The latest spread, calculated through June 14, is less than half what it was this time last year but is still higher than pre-pandemic levels.
The SMU hot rolled coil price average fell $90 per ton to $1,100 per net ton ($55.00 per cwt) as of last Tuesday, and is now at a 14-week low. This was the largest week-over-week decline in steel prices since mid-February. Recall our HRC price peaked last September at $1,955 per ton, gradually falling to a low of $1,000 per ton in early-March. HRC prices then rapidly rose following the Russia-Ukraine war to $1,480 per ton in mid-April.
