Hot Rolled vs Scrap Price Spread Stabilizes

The relationship between hot-rolled coil (HRC) and prime scrap prices has stabilized in the last few weeks, according to Steel Market Update data. After briefly stalling in August, hot rolled prices have began to slide downwards again since the beginning of this month. Busheling scrap prices settled at down $45 per gross ton last week, the sixth consecutive month of declining prices. Overall, we had seen a stable delta between the two products since late July. The latest spread is less than one-third what it was this time last year, but it is still higher than pre-pandemic levels.

Our hot rolled coil price average declined $25 per ton week-over-week to $730 per net ton ($36.50 per cwt) as of Oct.11. HRC prices are down $45 per ton compared to levels four weeks prior and have seen an overall decline of $795 per ton since the start of the year. Looking back to one year ago, prices today are down $1,180 per ton. Recall our HRC price peaked just over one year ago at $1,955 per ton.