12 Jul 2024 | 19:38 UTC

LME rebar contracts maintain a contango curve, weekly trading volumes mixed on week

Highlights

Near-term rebar contracts remain in a slight contango

Weekly trading volumes for scrap up on week

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Volumes traded for the scrap futures contract on the London Metal Exchange, which settle basis Platts assessments, increased slightly on the week despite a lull in physical market activity reported to Platts in the week to July 12.

Spot prices for physical imports of premium heavy melting scrap 1/2 (80:20) remained mostly stable and were assessed at $389.50/mt CFR July 11, down by 50 cents/mt on the week.

The near-term structure over the July-October portion of the forward curve was assessed largely flat on July 11, indicating expectations that spot prices in the physical market could remain largely stable as the market heads into summer.

Contract month Platts assessed LME scrap forward curve July 4 ($/mt) Platts assessed LME scrap forward curve July 11 ($/mt) Week on week change ($/mt)
July 389.5 389.25 -0.25
August 390.25 389 -1.25
September 389 388 -1.00
October 390 388 -2.00

Weekly LME scrap futures trading volumes were at 103,359 mt July 11, increasing from 92,770 mt recorded on July 4 as restocking activity in the physical market slowed down in the week to July 12, with mills attempting to pressure prices lower but sellers maintaining firm offers due to elevated HMS collection costs and slow inflows.

Rebar futures contracts on the London Metal Exchange slightly decreased in volumes traded due to continued weak demand in the physical market for export and domestic market.

Contract month Platts assessed LME rebar forward curve July 4 ($/mt) Platts assessed LME rebar forward curve July 11 ($/mt) Week on week change ($/mt)
July 583.5 576.5 -7.00
August 590.25 581 -9.25
September 592.25 586.25 -6.00
October 594.5 591 -3.50

The July-October portion of the forward curve for Turkey rebar futures on the London Metal Exchange remained in a contango, indicating the anticipation of a potential upward trend in Turkish rebar prices in the near term.

Turkish rebar export prices remained stable on July 11, as market participants reported a continued slowdown in activity with a lack of buyer interest at current market prices. Platts, part of S&P Global Commodity Insights, assessed Turkish exported rebar at $577.50/mt FOB on July 11, unchanged on the day.

Platts assessed the daily outright spread between Turkish export rebar and import scrap prices at $188/mt July 11, widening by 50 cents/mt on the week.

Weekly LME rebar futures trading volumes in the week to July 11 slightly decreased to 23,210 mt, down by 2,750 mt from 25,960 mt recorded in the week to July 4.

Editor:

Giselle Rodriguez