Trading volumes in London Metal Exchange scrap futures contracts, which are calculated based on Platts estimates, fell slightly during the week as mills completed July delivery orders and activity in the physical market slowed.
Spot Physical import prices for high quality 1/2 grade (80:20) heavy steel scrap were largely range-bound and were valued at $390 per ton CFR on July 4, down 25 cents per ton for the week.
The short-term structure of the forward curve for the July-October period remained broadly flat on July 4, indicating expectations that spot prices in the physical market will remain stable in the short term.
Weekly scrap futures trading volume LME stood at 92,770 tonnes on 4 July, down from 348,500 tonnes recorded on 27 June due to weaker physical market activity.
London Metal Exchange rebar futures contract trading volumes rose despite continued weakness physical market demand for exports and sustained buying pressure.
The July-October portion of the LME Turkish rebar futures forward curve remained in contango, indicating traders expect prices to Turkish valves in the physical market may follow an upward trend in the near future.
Prices for Turkish export valves rose on July 4 as Turkish factories maintained firm supply despite limited export demand. Platts, part of S&P Global Commodity Insights, priced Turkish export rebar at $577.50/t FOB on July 4, up $2.50 million from July 3.
Platts estimated the daily spread between Turkish export rebar and imported scrap at $187.50 per ton as of July 5, well below the target spread of $200 per ton when converting scrap into rebar.
Weekly trading volumes in futures for rebar on the LME for the week ended 4 July rose to 25,960 tonnes, up 8,360 tonnes from the 17,600 tonnes recorded for the week ended 27 June.
