LME scrap futures maintain contango structure

The volumes traded for the scrap futures contracts on the London Metal Exchange, which settle based on the Platts assessment, decrease week over week.

Weekly LME scrap futures trading volumes in the week to Feb. 27 decreased to 211,700 mt down from 285,420 mt in the week starting Feb. 20.

Platts, part of S&P Global Commodity Insights, assessed spot prices for physical imports of premium heavy melting scrap 1/2 (80:20) at $364/mt CFR Feb. 27, increasing by $6/mt week over week, as Turkish mills continued to restock from a firm sell side despite facing limited rebar sales.

The February-May portion of the forward curve for Turkey scrap futures on the LME maintained its contango structure during the week, indicating that futures traders expected Turkish scrap prices in the physical market to increase in the medium term.