Metals & Mining Theme, Ferrous, Non-Ferrous

February 14, 2025

LME scrap volumes rise on week, futures contract maintains contango

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HIGHLIGHTS

Weekly trading volumes for scrap higher

LME scrap contract maintains contango

Volumes traded for the scrap futures contracts on the London Metal Exchange, which settle basis the Platts assessment from S&P Global Commodity Insights, rose week over week during the seven days to Feb. 13.

Weekly LME scrap futures trading volumes in the week to Feb. 13 increased to 109,140 mt, up from 88,530 mt in the week starting Feb. 6.

Platts assessed spot prices for physical imports of premium heavy melting scrap 1/2 (80:20) at $359.50/mt CFR Feb. 13, increasing by $5.50/mt on the week, as strong US domestic settlements during the February buyweek emboldened export offers from the US and Europe.

Contract month Platts assessed LME scrap forward curve Feb. 6 ($/mt) Platts assessed LME scrap forward curve Feb. 13 ($/mt) Week on week change ($/mt)
February 362 359.5 -2.50
March 359 366 +7.00
April 364 370 +6.00
May 368.5 371 +2.50

The February-May portion of the forward curve for Turkey scrap futures on the London Metal Exchange maintained its contango structure during the week, indicating that futures traders expected Turkish scrap prices to continue to climb in in the medium term.

Weekly LME rebar futures trading volumes weakened to 420 mt in the week to Feb. 13, down from 3,090 mt in the week from Feb. 6, amid limited demand in the spot market for Turkish finished steel.

Contract month Platts assessed LME rebar forward curve Feb. 6 ($/mt) Platts assessed LME rebar forward curve Feb. 13 ($/mt) Week on week change ($/mt)
February 572.75 569.5 -3.25
March 578.5 577 -1.50
April 584 584 0.00
May 588.5 588.5 0.00

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

Platts assessed Turkish exported rebar at $565/mt FOB on Feb. 13, up by $5/mt on the week from Feb. 6.

Platts is part of S&P Global Commodity Insights

Editor:

Jonathan Loades-Carter