US copper scrap export spreads were unchanged from last week on tepid demand and sufficient supply.
Transactional prices decreased on average by 22¢/lb on weakness in the COMEX exchange, with the next active COMEX contract falling from $2.77/lb a week ago to $2.558/lb on Wednesday.
The Davis Index Spreads for #1 copper wire and tube (Berry/Candy) fas US port were at 24¢/lb, the same as last week, while Spreads for #2 copper (Birch/Cliff) fas US port spreads held at 43¢/lb under Comex. Bare Bright (Barley) spreads were also unchanged at 15¢/lb under Comex fas US ports.
The Davis Index for #1 and #2 copper fas US port scrap grades decreased by around 22¢/lb compared to last week with prices for #1 copper fas US port falling to $2.31/lb on Wednesday, compared to $2.53/lb from the previous week’s Index. The Index for #2 copper fas US port was down from $2.35/lb to $2.12/lb.
The Davis Index for Bare Bright (Barley) fas US port also declined from $2.62/lb to $2.40/lb on Wednesday.
Port closures in Asia resulting from quarantine measures for the coronavirus, might impact the export market moving forward. But these actions won’t impact the US copper scrap, immediately as the market remains quiet with so little being traded this week.
US Copper scrap markets seem well supplied in the near term, with consumers having deliveries set through February. At $2 or more per pound, larger scrap yards are not interested in holding on to scrap copper for higher numbers. The consistent flow of scrap from industrial accounts, moving through larger scrap processors, indicates enough supply to meet domestic demand, for now, keeping spreads where they are.