HMS 80:20 Scrap
*Turkish import prices fall $10 over the last week*
Following a proactive procurement plan over the last month on Turkish Scrap, Turkish mills now appear to have taken to the sidelines with ample stock. Turkish import prices have gradually drifted down over the last week from the 3-month high of $270/t. The futures curve has generally moved lower over the past week however has maintained its flat nature. Turkish import prices are expected to continue to drift over the coming weeks amid tougher market conditions, particularly the drop off in finished steel demand from China.
Northwest European HRC
*ArcelorMittal announces €440/t ex-works base price*
Northwest European HRC has been somewhat in freefall over the past week, with Covid19 being particularly hard hitting. The index continues to tumble which now sits €19.50/t lower than the start of the month. However, measures are being taken to try stabilise the market and inject some needed support. ArcelorMittal announced a €440/t ex-works base price yesterday, with the hope of lending price support during Q4, where participants are expected to restock following the impact of Covid19.
FOB China HRC
*PBOC injects 180 billion yuan, stimulating domestic Chinese steel demand*
China’s central bank injected 180 billion yuan into the market at the end of last week to help stabilise liquidity in the banking system. This helped stimulate the Chinese steel market with domestic demand remaining robust over the start of this week. Futures similarly have ticked up over the last two days, with August trading 430 in 500t.
CME HRC
Jun20 expiry at $499.00 has kept contango structure. while physical deals are still conducted below indices, steel futures are pricing expectations for an infrastructure bill and manufacturing restarts.
CME BUS
Market has been muted as we enter the Jul20 Physical trade period. While the curve suggests expected strength for this raw material from August onward, the Physical market is split on the direction of Jul20 deals. Mill restarts will play a major factor heading into summer.