LME scrap futures maintain a backwardation structure

Weekly London Metal Exchange scrap futures trading volumes fell to 126,610 mt in the week ended April 3, down from 259,080 mt the previous week.

The contracts settle on Platts assessment basis.

Platts, part of S&P Global Energy, assessed spot prices for physical imports of premium heavy melting scrap 1/2 (80:20) at $378/mt CFR April 3, down $2.50/mt week on week. There were limited firm offers despite strong supplies as cautious sellers responded to volatile exchange rates and uncertain near-term price expectations, market sources said.

The April-June portion of the forward curve for Turkey scrap futures on the LME maintained its backwardation structure during the week, indicating that traders expect Turkish scrap prices in the physical market to decrease in the medium term.