Some brass scrap indices declined on a weak Comex market Friday, but their near-term prospects nevertheless remain positive.
The copper component of brass was slightly weaker over the past week, as reflected in brass mills’ reactions to the Comex market peaking, then falling. Now that the Comex market has broken the $3/lb mark, scrap has become more abundant and readily available. Copper scrap spreads have continued widening over the past two weeks, and brass mills have enjoyed strong demand for their end products more than regular copper producers have.
The weekly Davis Index for 360-rod borings decreased by 0.5¢/lb to $2.087lb delivered US consumers, and increased by 0.5¢/lb for brass radiators to $1.692/lb delivered US consumer.
The weekly Davis Index for the C-200 series alloy copper spread widened by 0.1¢/lb to 10.8¢/lb under the Comex spot contract, while the C-200 series zinc spread contracted by 0.1¢/lb to 6¢/lb under the LME Zinc cash contract.
The Comex spot copper contract declined by 1¢/lb to $3.03/lb on Friday from September 4, while the spot LME Zinc official contract decreased by $5/mt from September 4 to close today at $2,428.5/mt.
Civil strife throughout the US is driving strong ammunition sales, as has the potential for a different party getting elected to the White House in November. Both factors have impelled gun owners to stock up on rounds, which has catalyzed demand for brass sheet.