Metals & Mining Theme, Ferrous, Non-Ferrous

January 17, 2025

LME scrap volumes rise on week, futures contract in contango

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HIGHLIGHTS

Scrap prices drop amid bearish start to 2025

LME scrap contract in contango

Weekly trading volumes for scrap futures on the London Metal Exchange saw an increase in the week to Jan. 16.

The volumes traded rose to 144,210 mt, up from 129,770 mt in the week to Jan. 9 as market participants attempted to navigate the bearish start to the year.

Platts assessed spot prices for physical imports of premium heavy melting scrap 1/2 (80:20) at $332.50/mt CFR on Jan. 16, down by $10.50/mt from $343/mt on Jan. 9, as the bearish start to 2025 continued amid intense buy-side pressure on prices.

Platts assessed LME scrap forward curve Jan. 9 ($/mt) Platts assessed LME scrap forward curve Jan. 16 ($/mt) Week on week change ($/mt)
342 341.5 -0.50
344.5 346 1.50
347 351 4.00
350 354 4.00

The January-April portion of the forward curve for Turkey scrap futures on the LME maintained a contango structure, indicating that futures traders expect Turkish scrap prices in the physical market to recover in the medium term.

Rebar futures volumes down

Rebar futures volumes traded on the LME decreased in the week to Jan. 16, falling to 2,770 mt from 8,350 mt in the week to Jan. 9.

Platts assessed Turkish exported rebar at $552.50/mt FOB on Jan. 16, down by $2.50/mt from $555/mt on Jan. 9, amid slow sales and weak demand for Turkish material in the global markets.

Contract month Platts assessed LME rebar forward curve Jan. 9 ($/mt) Platts assessed LME rebar forward curve Jan. 16 ($/mt) Week on week change ($/mt)
January 561 559.5 -1.50
February 564.5 563 -1.50
March 569 567.5 -1.50
April 578 576.5 -1.50

The January-April portion of the forward curve for Turkey rebar futures on the LME maintained a sharp contango structure, suggesting that futures traders expect Turkish rebar prices in the physical market to follow an upward trend in the near term.

Platts is part of S&P Global Commodity Insights.

Editor:

Jonathan Loades-Carter