CFR Turkey scrap futures contracts on the London Metal Exchange saw a trading volume of 291,500 mt on April 8, a record high, the latest data showed.
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Register NowLME CFR Turkey scrap futures trading volumes have grown sharply in recent years, with approximately 8.08 million mt traded in 2023, up sharply from 4.31 million mt in 2022.
The growth in traded volumes on LME CFR Turkey scrap futures continued into the first quarter of 2024, when almost 3.06 million mt was traded, compared with 2.26 million mt in Q1 2023.
January saw a record 1.17 million mt traded, the highest monthly figure since the contract was launched by the LME in November 2015. April could be on track to surpass this level, with 635,551 mt traded over five trading days so far, with 16 further trading days to go, including April 9.
The average daily trading volume over 2024 to date is approximately 53,596 mt as of April 8.
The LME CFR Turkey scrap futures contract settles against the monthly average of the physical Platts CFR Turkey premium HMS 1/2 (80:20) assessment.
In March the Platts physical assessment remained rangebound between $376-$390.50/mt CFR. Prices rose steadily over March 7-26 as mills returned to restock cargoes for April shipment.
Platts, part of S&P Global Commodity Insights, assessed Turkey premium HMS 1/2 (80:20) at $384/mt CFR on April 9, unchanged on day, in line with a US deal heard booked by an Iskenderun mill at the same level on April 8, as market activity in Turkey remained largely limited amid the Eid al-Fitr holidays. Spot prices for physical imports of premium heavy melting scrap 1/2 (80:20) into Turkey dropped from a year-to-date high of $427.50/mt CFR Turkey on Jan. 10, as Turkish mills pulled back amid slow rebar demand, and improving availability from key export regions.
The LME CFR Turkey scrap forward curve shifted into a soft backwardation over April-July amid market uncertainty over near-term price direction, as market participants digested the longer-term implications of the announcement of steel export restrictions to Israel announced by the Turkish government on April 9.