Metals & Mining Theme, Ferrous, Non-Ferrous
March 21, 2025
LME scrap volumes surge on week, futures remain in contango
By Semra Ugur
HIGHLIGHTS
Weekly traded scrap volumes climb
Rebar spot prices rise on week
Volumes traded for the scrap futures contracts on the London Metal Exchange, which settle basis the Platts assessment, spiked to 604,170 mt in the week to March 20 from 84,600 mt the prior week.
Platts, part of S&P Global Commodity Insights, assessed spot prices for physical imports of premium heavy melting scrap 1/2 (80:20) at $381/mt CFR March 20, up $1/mt week over week, as market participants remained on the sidelines amid political unrest and the volatility of the Turkish lira.
| Contract month | Platts assessed LME scrap forward curve March 13 ($/mt) | Platts assessed LME scrap forward curve March 20 ($/mt) | Week over week change ($/mt) |
| March | 371.5 | 374.5 | 3.00 |
| April | 376.5 | 378.5 | 2.00 |
| May | 380.5 | 377 | -3.50 |
| June | 380.5 | 378.5 | -2.00 |
The March-June portion of the forward curve for Turkish scrap futures on the London Metal Exchange maintained its contango structure during the week, indicating that futures traders expected Turkish scrap prices in the physical market to rise in the medium term.
Rebar futures volumes traded on the LME jumped to 1,700 mt in the week to March 20 from nil a week ago.
Platts assessed Turkish exported rebar at $572.50/mt FOB March 20, up $2.50/mt from March 13, despite Turkish mills maintaining stable offers.
The March-May portion of the forward curve for Turkey rebar futures on the LME maintained a contango structure, indicating that futures traders expect Turkish rebar prices in the physical market to follow an upward trend in the near term.
| Contract month | Platts assessed LME rebar forward curve March. 13 ($/mt) | Platts assessed LME rebar forward curve March 20 ($/mt) | Week on week change ($/mt) |
| March | 573.25 | 573.25 | 0.00 |
| April | 578.5 | 584.5 | 6 |
| May | 583.5 | 588.5 | 5 |
| June | 585.75 | 587.5 | 1.75 |
Source: LME