US brass scrap spreads narrowed on Friday to help offset the drop in the Comex copper market, but the tightening of spreads wasn’t enough to prevent spot prices from decreasing.
The Davis Index for 360-rod borings was down to $1.70/lb on Friday from $1.76/lb, while red brass (85:15) decreased to $2.20/lb from $2.23/lb. Brass radiators also reduced to $1.38lb from $1.42/lb.
The spread for C-200 series copper cash narrowed to 11.3¢/lb under Comex cash price, down by 1.4¢/lb from a week ago, and the spread for C-200 series zinc cash tightened to 4.3¢/lb from 5.8¢/lb, a week ago.
The next active Comex price decreased to $2.54/lb on Friday, from $2.61/lb at its close on Feb 21, while the three-month LME zinc cash price decreased to close at 91.67¢/lb on Friday, from 95.39¢/lb a week ago.
Spreads tightened over the week to help increase scrap flows, which are slow due to the price drop on the copper and zinc exchanges. Brass sales have also decreased due to the uncertainty and fear caused by the Covid-19 virus detected in the US. Spreads are likely to widen again if sales continue their downward trend.