LME scrap prices at lowest level of the year

Scrap prices continue to decrease in Lme steel futures.

CFR Turkey delivery scrap prices traded on the London Metal Exchange decreased to the lowest level of 2023 with $ 359 in 2-month futures.

According to last week's closing data, the year-to-date trading volume of CFR Turkey scrap futures contracts on the London Metal Exchange reached a five-year high of 4.32 million mt.

In the whole of 2022, this figure was approximately 4.31 million mt.

Spot prices for Turkey HMS 1/2 (80:20) physical scrap imports have decreased by around $45-50 since the start of the year to $355 CFR Turkey, reaching a year-high of $465 on 13 March.

The persistently weak demand for Turkish finished steel products continues to weigh on scrap import prices.

Market players expect physical scrap import prices to soften further in the near term as demand for finished steel products remains weak.

The fact that not much scrap was purchased in July and scrap suppliers have sufficient scrap stocks suggests that the decrease in scrap prices will continue.