*Physical scrap fixtures continue to be rangebound*
A handful of physical fixtures have been reported over the past week, with traded levels holding relatively steady at around $255/t CFR. The most recent fixture was a UK based seller transacting a 15kT cargo, split across 14kT HMS 80:20 at $253/t and 1kT shredded scrap at $258/t CFR. Platts estimates the actual value of the HMS 80:20 would be closer to $255.50/t CFR once factoring in quality. Similarly scrap futures have a little stagnant of late, with little movement in the curve. The curve remains flat with value around $261/t through to year end.
*NWE HRC road to recovery continues with the gaining a further €5*
Northwest European HRC continues its recovery as the index moves a further €5 higher over the course of the week. Demand is beginning to strengthen with the control of coronavirus in Europe, however in comparison to pre-lockdown demand remains weak. Futures continue to trickle through the block with most recently Q121 vs Q221 trading at +1 in 200t/m.
*Active FOB China HRC week with over 35,000t clearing*
Chinese steel prices remain under pressure amid weakening demand and rising inventory levels. However, some short-term support may be seen with Tangshan’s extended production cuts to curb air pollution till the end of July. Futures prices have remained largely unchanged over the last week, with the curve continuing to sit in backwardation. A significant week in terms of volumes traded with over 35,000t trading in the last week.