US weekly export copper scrap spreads varied according to demand on Wednesday amid improving trade.
Imports are gradually recovering in Asian destinations like India after buyers retreated at the beginning of June due to the volatility in Comex and LME copper prices. China continues to buy cleaner scrap grades. In Europe, importers are buying some last-minute loads before smelters shut down in August for five weeks.
The next active Comex copper contract decreased by 2¢/lb to $4.29/lb today from Jun 23. Comex copper has remained stable considering the strengthening US dollar, which had earlier indicated a downward push in prices. On the other hand, the curbs in China are weighing on the red metal’s rally and preventing Comex and LME copper prices from reaching higher.
The Davis Index weekly spread for bare bright (barley) widened by 0.4¢/lb to 18.5¢/lb under the next active Comex copper contract, while #1 copper wire & tube (Berry Candy) narrowed by 0.1¢/lb to 25.7¢/lb under the next active Comex.
Transaction prices for copper scrap grades inched down on Wednesday with bare bright (barley) dropping by 3¢/lb to $4.10/lb fas US port and #1 copper wire & tube decreasing by 2¢/lb to $4.03/lb fas.
The Davis Index weekly spread for export #2 copper (birch/cliff) narrowed by 4.7¢/lb to 54.5¢/lb under the next active Comex copper contract. Offers to China for this grade were heard at spreads as narrow as 44-46¢/lb under the next active Comex copper. The grade’s outright price increased by 2¢/lb to $3.74/lb fas US port.
Russia’s tax on copper export is not likely to impact the US market and neither will China’s upcoming auction of its copper reserves since market participants are nonchalant because of the low volume. However, traders remain wary about rising freight rates that may impact sales.