US weekly brass scrap spreads tightened on Friday after Comex copper and LME Zinc witnessed steep declines through the week.
The Comex spot copper contract closed at $4.158 today, down by 37.7¢/lb from Jun 11. The spot LME zinc official cash contract plunged by $128/mt to $2,873/mt over the same period. Comex copper and LME Zinc have dropped consistently since the beginning of the week on news of China releasing its reserve aluminum, copper, and zinc stocks. Moreover, a strengthening US dollar has also impacted export trade and exchange prices.
The weekly Davis Index for C-200 series alloy’s copper spread tightened by 1¢/lb to 10.5¢/lb under the Comex copper spot contract, while the C-200 series zinc spread, narrowed by 0.4¢/lb to 5.3¢/lb under the LME zinc cash contract.
In the domestic market, brass scrap prices bore the brunt of the decline in the LME and Comex and declined by around 7-11¢/lb depending on grade. The weekly Davis Index for 360-rod borings dropped by 11.2¢/lb to $3.01/lb delivered US consumer. Brass radiators fell by 9.5¢/lb to $2.405/lb delivered, while red brass 85:15 decreased by 7¢/lb to $3.50/lb delivered.
Supply remains limited in the brass market though mills have been able to procure loads for July especially from the larger scrap yards. The current price volatility, combined with tight supply has put yards that have the volumes in a position to negotiate with buyers for prompt delivery. Still, with the direction of Comex and LME uncertain in the near term, the market is expected to remain quiet until it stabilizes.