US weekly brass scrap spreads trended flat on Friday in a bid to resist the all-time high on Comex copper and soaring LME Zinc prices.
The Comex spot copper contract rose to an all-time high, closing 25¢/lb above Apr 30 settled prices at $4.76/lb on Friday. The spot LME zinc official contract increased by $62/mt to $2,973/mt today after surging by $102/mt on Apr 30 compared to the previous week.
Still, the brass market resisted these surges, with participants opting to keep their spreads flat. The weekly Davis Index for C-200 series alloy’s copper spread widened by 0.1¢/lb to 13¢/lb under the Comex copper spot contract. The C-200 series zinc spread remained at 6.5¢/lb under the LME zinc cash contract.
Transaction prices for brass jumped again in tandem with the soaring Comex copper and LME zinc prices and improving demand this week. The weekly Davis Index for 360-rod borings increased by 4¢/lb to $3.105/lb delivered US consumer. Brass radiators climbed by 6¢/lb to $2.514/lb delivered, while Red Brass solids rose by 7¢/lb to $3.206/lb delivered.
Red brass availability, in the export market remains extremely limited amid COVID-19 related shutdowns in Chile, a key source for that grade. Transportation costs and a shortage of road transportation options are keeping some buyers away from the domestic market for now. Buyers who have reentered the market due to high end-consumer demand are looking for sellers who can meet their bids at wider spreads in this high-priced environment.