The weekly Davis Index for US brass scrap decreased Friday, while spreads remain unchanged. The Davis Index for US C260 alloy was flat at $1.95/lb outright price from a week ago, as both the spot Comex copper exchange and three-month LME zinc prices showed weakness.
The C-200 series copper cash spread at 12¢/lb under Comex remained unchanged from last week, while the C-200 series zinc cash spread was also unchanged at 5.5¢/lb.
The next active Comex price decreased to $2.68/lb on Friday from Jan 17, while the three-month LME zinc cash price also declined from $1.10/lb to $1.065/lb over the same period.
US brass scrap prices also lost ground this week. The Davis Index for 360-rod borings scrap decreased by 3¢/lb to $1.85/lb from $1.88/lb last week, while 85:15 red brass decreased to $1.95/lb from $1.99/lb. The Index for Brass radiators also decreased to $1.44/lb from $1.46/lb.
US copper spreads could tighten over the coming weeks because of China’s return to the market. Over half of the world’s copper supply is consumed by China, making it the most significant variable in the copper pricing equation. With copper warehouses forecasting a deficit this year, the copper and brass scrap markets should benefit from increasing flows and better pricing.