LME rebar contracts sees increases on week, near-term contango persists

Volumes traded for the scrap futures contract on the London Metal Exchange, which settle basis Platts assessments, declined slightly on week as the mills concluded July shipment bookings, and activity in the physical market slowed down.

Spot prices for physical imports of premium heavy melting scrap 1/2 (80:20) were largely rangebound and were assessed at $390/mt CFR July 4, down 25 cents/mt on the week.

The near-term structure over the July-October portion of the forward curve was largely flat on July 4, indicating expectations that spot prices in the physical market would remain firm in the near term.

Contract month Platts assessed LME scrap forward curve June 27 ($/mt) Platts assessed LME scrap forward curve July 4 ($/mt) Change on week ($/mt)
July 388 389.5 1.50
August 385.5 390.25 4.75
September 386.5 389 2.50
October 390

 

Weekly LME scrap futures trading volumes at 92,770 mt July 4, decreasing from 348,500 mt recorded in June 27 as activity in the physical market slowed down.

Rebar futures contracts on the London Metal Exchange increased in volumes traded despite continued weak demand in the physical market for exports and sustained buyside pressure.

Contract month Platts assessed LME rebar forward curve June 27 ($/mt) Platts assessed LME rebar forward curve July 4 ($/mt) Change on week ($/mt)
July 581.5 583.5 2.00
August 582.5 590.25 7.75
September 587.5 592.25 4.75
October 594.5

 

The July-October portion of the forward curve for Turkey rebar futures on the London Metal Exchange remained in contango, indicating traders expected Turkish rebar prices in the physical market could follow an upward trend in the near term.

Turkish rebar export prices increased on July 4, as the Turkish mills kept offers firm despite limited export demand. Platts, part of S&P Global Commodity Insights, assessed Turkish exported rebar at $577.50/mt FOB on July 4, up $2.50mt from July 3.

Platts assessed the daily outright spread between Turkish export rebar and import scrap prices at $187.50/mt July 4, well below the target $200/mt scrap-rebar conversion spread.

Weekly LME rebar futures trading volumes in the week to July 4 increased to 25,960 mt, up 8,360 mt from 17,600 mt recorded in the week to June 27.

Semra Ugur


spglobal.com