London Metal Exchange (LME) short-term scrap metal futures fell sharply in the week to April 7, with trading volumes lower. According to S&P Global Commodity Insights, the contract for the supply of scrap in April fell by $8.75 to $636.50 per ton. The May contract fell $30.75 to $609.50/t, while the June contract fell $35 to $599.50/t.
Spot prices for physical imports of premium heavy-melting scrap 1/2 (80:20) rose 25 cents per ton per week compared to the previous week to $654 per ton CFR Turkey on April 7, as most mills continued to refrain from buying , while the number of transactions remained almost unchanged.
“The market is stable, but still silent, so in my opinion, prices may decrease slightly if there is no demand from factories next week - I think next week everything will become clear,” the Turkish agent said.
The volume of trading in scrap metal futures on the LME for the week to April 7 amounted to 22,790 tons compared to 85,690 tons a week earlier. March trading volumes were 470,890 tons, the highest since May 2020 of 557,250 tons, as sharp price volatility due to Russia's invasion of Ukraine fueled futures activity.
Short-term rebar futures contracts also showed strong losses in the week to April 7, as did scrap.
Platts estimates that the April contract is down $10.50/t to $939.50/t/t. The May contract fell $16 to $929.50/tonne and the June contract fell $11 to $919.50/tonne.
Turkish physical rebar export prices were flat week-on-week at $960/t FOB on April 7, maintaining a range of $955-960/t FOB during the week as market participants continued to point out buyers in Europe were willing to accept higher prices than other export markets.
The ongoing Islamic holy month of Ramadan has also put pressure on export demand in regular, non-European markets.
Weekly trading volumes in rebar futures on the London Metal Exchange on April 7 amounted to 6,460 tons, compared with 14,140 tons the previous week. Trading volumes in March were 201,650 tons, the highest since the launch of the contract, surpassing the previous record of 149,700 tons sold in February.
The daily direct spread between Turkish export rebar and imported scrap was estimated at $306 per tonne on April 7, down 25 cents per tonne from the week.
