London April 23 2022: Near-term scrap futures contracts on the London Metal Exchange saw strong losses over the week to April 21, while the trading volumes also dipped on the week.
S&P Global Commodity Insights’ Platts assessed the April contract down $11/mt at $619.50/mt on April 21. The May contract lost $14.50/mt to $590/mt, while the June contract fell $19/mt to $580/mt. The July contract dropped $39.50/mt to $550/mt.
The backwardated structure over the April-May portion of the forward curve strengthened on the week, suggesting that futures traders on April 21 continued to expect physical scrap prices to soften in the near-term.
The backwardation over May-July portion of the forward curve strengthened significantly for the June-July portion of the curve, as futures traders expected sharply lower physical prices into the summer months.
Spot prices for physical imports of premium heavy melting scrap 1/2 (80:20) decreased $25/mt week on week to $615/mt CFR Turkey on April 21, as most mills continued to hold back from buying further May shipment cargoes.
Most near-term rebar futures contracts also saw strong losses over the week to April 21.
S&P Global Commodity Insights’ Platts assessed the April contract flat on the week at $939.50/mt. The May contract fell $51/mt to $869.50/mt, while the June contract lost $47/mt to $858.50/mt. The July contract dropped $52/mt to $848.50/mt.
The backwardation over the April-June portion of the forward curve strengthened over the week, suggesting that futures traders still expect prices to soften in the near-term.
The backwardated structure over the June-July portion of the curve was largely unchanged.
