The Davis Index for brass scrap was flat for most grades on Friday in a week where the exchange markets continued to show short-term volatility.
The Comex spot market started the week at $2.60/lb and closed at $2.61/lb on Friday, dropping down to a low of $2.56/lb over the week. Spreads, as a result, contracted to help encourage and maintain scrap flows in an environment where scrap supply has remained tight.
The weekly Davis Index for 360-rod borings decreased by 1¢/lb to $1.76/lb delivered US consumers and reduced by the same amount for brass radiators to $1.59/lb delivered US consumer. The index for red brass (85:15) solids rose by 1¢/lb for to $2.25/lb, delivered US consumers.
The weekly Davis Index for the C-200 series alloy copper spread was tighter by 0.8¢/lb at 6.7¢/lb under the Comex spot contract, while the C-200 series zinc spread was better by 0.2¢/lb at 3.1¢/lb under the LME zinc spot contract.
The Comex cash copper contract was higher by a penny at $2.61/lb on Friday, up from $2.60/lb on June 12, while the spot LME zinc official contract increased by $82/mt on Friday to $2,073/mt from $1,991/mt on June 12.
Activity in the brass markets has picked up and scrap deliveries have been more robust. Consumers, however, are careful not to get too complacent in such uncertain times where a good week can be followed by a bad one. Keeping scrap flows moving is important but challenging in such volatile markets.