2024年09月13日 | 13:42 UTC

LME scrap, rebar volumes dip slightly on week; futures contracts enter slight contango

Highlights

Physical Turkish scrap spot prices stabilize amid balanced market

LME scrap and rebar contracts enter slight contango

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Volumes traded for scrap futures contracts on the London Metal Exchange, which settle on Platts assessment basis, dipped on the week despite a flurry of restocking as physical spot prices stabilized.

After a period of upside in early September, spot prices for physical imports of premium heavy melting scrap 1/2 (80:20) stabilized as sources reported balanced market fundamentals in the week to Sept. 12, and were assessed at $370/mt CFR Sept. 12, unchanged from Sept. 5.

Weekly LME scrap futures trading volumes in the week to Sept. 12 decreased to 124,570 metric tons from 211,460 metric tons in the week to Sept. 5 as physical spot prices stabilized.

Contract month Platts-assessed LME scrap forward curve Sept. 5 ($/mt) Platts-assessed LME scrap forward curve Sept. 12 ($/mt) Week-on-week change ($/mt)
September 367 369.5 2.50
October 365 373 8.00
November 366 370.5 4.50
December 366.25 371.5 5.25

The September to December portion of the forward curve for Turkey scrap futures on the LME steepened its slight contango structure, indicating that futures traders expect Turkish scrap prices in the physical market to recover in the medium term.

Rebar futures volumes traded on the LME also decreased slightly in the week to Sept. 12, with physical market activity slowing down as the Q3 EU import quota for Turkish rebar neared exhaustion.

Weekly LME rebar futures trading volumes fell to 6,940 metric tons in the week to Sept. 12 from 8,590 metric tons in the week to Sept. 5.

Contract month Platts-assessed LME rebar forward curve Sept. 5 ($/mt) Platts-assessed LME rebar forward curve Sept. 12 ($/mt) Week-on-week change ($/mt)
September 570.5 575.5 5.00
October 571.5 577.5 6.00
November 571.5 577.5 6.00
December 571.5 579.5 8.00

The September to December portion of the forward curve for Turkey rebar futures on the LME entered a slight contango structure, indicating that futures traders expect Turkish rebar prices in the physical market to recover in the medium term.

Platts, part of S&P Global Commodity Insights, assessed Turkish exported rebar at $577.50/t FOB Sept. 12, up 50 cents/t on the day and largely stable from Sept. 5.

Editor:

Adithya Ram