LME scrap futures maintain a contango structure

Volumes traded for the scrap futures contracts on the London Metal Exchange, which settle basis the Platts assessment, fell week over week.

Weekly LME scrap futures trading volumes in the week to March 13 decreased to 84,600 mt, from 120,730 mt in the week starting March 6.

Platts, part of S&P Global Commodity Insights, assessed spot prices for physical imports of premium heavy melting scrap 1/2 (80:20) at $380/mt CFR March 13, increasing by $6.50/mt on the week amid strong US domestic market sentiment and a strengthening euro.

The March-June portion of the forward curve for Turkey scrap futures on the London Metal Exchange maintained its contango structure during the week, indicating that futures traders expected Turkish scrap prices in the physical market to increase in the medium term.