Metals & Mining Theme, Ferrous, Non-Ferrous

November 15, 2024

LME scrap volumes up on week, futures remain in contango

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HIGHLIGHTS

Weekly trading volumes for scrap increase on week

LME scrap contract in 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, increased on the week.

Weekly LME scrap futures trading volumes in the week to Nov. 14 increased to 199,320 mt, up from 117,340 mt in the week from Nov. 7.

Platts assessed spot prices for physical imports of premium heavy melting scrap 1/2 (80:20) down by $8/mt on the week and at $356/mt CFR Nov. 14, with traders anticipating a potential rebound in prices as demand shifts towards January shipments, despite the current softening observed in both Baltic and European supply.

Contract month Platts assessed LME scrap forward curve Nov.7 ($/mt) Platts assessed LME scrap forward curve Nov. 14 ($/mt) Week on week change ($/mt)
November 373.5 362.5 -11.00
December 386 362 -24.00
January 389.5 372.5 -17.00
February 386.5 374 -12.50

The November-January 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 in the physical market to increase in the medium term.

Rebar futures volumes traded on the LME increased in the week to Nov. 14 as market participants aimed to hedge against possible price drops, driven by stable Turkish export prices and increased trading activity ahead of the holiday season.

Weekly LME rebar futures trading volumes increased to 2,340 mt in the week to Nov. 14, up by 2,300 mt in the week from Nov. 7.

Contract month Platts assessed LME rebar forward curve Nov. 7 ($/mt) Platts assessed LME rebar forward curve Nov. 14 ($/mt) Week on week change ($/mt)
November 594 587.5 -6.50
December 596.25 588.5 -7.75
January 600.75 598 -2.75
February 604.25 601 -3.25

The October-January 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.

Platts assessed Turkish exported rebar at $580/mt FOB on Nov. 14, down by $9/mt on the week from Nov. 7.

Editor:

James Leech