*Physical scrap breaks the $280/t CFR barrier
Physical scrap moved higher this week, with a handful of fixtures reported late last week and early this week. The most recent fixture included a Baltic based seller transacting an HMS 80:20 cargo at $283/t CFR. Furthermore, a Benelux based seller is reported to have transacted a 50:50 split physical scrap cargo which included HMS (75:25) and bonus scrap at an average price of $281/t CFR. Platts assesses this to normalise to around $283/t CFR for premium HMS 80:20. The scrap futures curve moved higher over the course of the week in light of the strengthening physical market. August futures traded at $295/t in 1kT on Tuesday.
*Northwest European HRC physical activity strengthens index
Northwest European HRC continued to strengthen over the last week, with the index moving €3.75/t higher. Argus reports of a large stockholder acquiring 10kt of September material. The futures market continues to remain relatively steady with the curve in contango through to Q121. Sep vs Oct traded -4 last Friday in 500t/m and 1kt/m.
*Strong Chinese sentiment move FOB China HRC futures higher
The index has moved $13/t higher since last Wednesday amid stronger Chinese sentiment. Argus reports Chinese mills have further increased offer levels since last Wednesday. One major Chinese mill increased its offer by $10-15/t to $500-515/t fob for SS400 HRC material. FOB China HRC futures have also strengthened September value moves to $494/t up $26 from last weeks trade. October futures ended up stuck this week at 486/488 in 500t.