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Most near-term scrap contracts on the London Metal Exchange saw losses over the week to March 31, while the trading volumes increased on week.
The S&P Global Commodity Insights Platts assessment for the March contract was stable at $639.50/mt on March 31, while the April contract lost $24.75/mt to $645.25/mt. The May contract dropped $19.75/mt to $640.25/mt, while the June contract decreased $12.50/mt to $634.50/mt.
The contango structure over the March-April portion of the forward curve weakened, suggesting that futures traders on March 31 continued to expect physical scrap prices to gain in the immediate near-term, however the increase might be less pronounced.
The backwardation over the April-June portion of the curve continued to soften on week.
Spot prices for physical imports of premium heavy melting scrap 1/2 (80:20) decreased $3.75/mt week on week to $653.75/mt CFR Turkey on March 31. The index was mostly within the range of $652-$654/mt CFR during the week, after reaching a high of $659/mt CFR Turkey on March 28, amid strong expectations of further deals in the first week of April. Scrap import prices in the physical market were mostly firm amid fresh deals for US- and Baltic-origin cargoes.
“The way the US talk is they have a good domestic market, good Latin American market so they are satisfied without Turkey,” one recycler source said.
Weekly LME scrap futures trading volumes over the week to March 31 totaled 85,690 mt, up from 38,110 mt last week, reaching its highest level since the week ending March 10, when the weekly volumes totaled 175,390 mt.
Near-term rebar futures contracts were mostly stable over the week to March 31.
The Platts assessment of the March contract was up 25 cents/mt week on week to $924.75/mt, while the April contract fell $30/mt to $950/mt. The May contract was stable at $945.50/mt, while the June contract was firm at $930.50/mt.
The contango over the March-April portion of the forward curve weakened over the week, suggesting that futures traders still expect prices to see gains in the immediate near-term, however the increase might be less than previously anticipated.
The backwardation over the April-May portion of the curve softened on week, while the backwardation over the May to June portion of the curve was firm.
Turkish physical rebar export prices decreased $10/mt on week to $960/mt FOB on March 31, as market sources continued to cite a clear disconnect between workable levels for European buyers compared to other export destinations. The market also heard a fresh deal to Canada during the week, which sources reported was at higher-than-average workable prices for Turkish rebars in the export market due to market factors at the export destination. Meanwhile, demand was mostly quiet ahead of Ramadan and European safeguard import quotas for steel products opening on April 1.
Rebar futures weekly trading volumes in the week on the London Metal Exchange totaled 14,140 mt on March 31, up from 12,950 mt the previous week, reaching its highest level since the week ending March 17, when the trading volumes totaled 40,800 mt.
The daily outright spread between Turkish export rebar and import scrap was assessed at $306.25/mt March 31, down $6.25/mt week on week.
Elsewhere, Indian scrap futures, which settles basis the Platts CFR Nhava Sheva shredded scrap assessment, traded 150 mt by March 31, down from 180 mt traded last week. The contract has seen a total volume of 4,260 mt traded since its launch in late July 2021.
Source: Platts