Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

US weekly export copper scrap spreads varied on Wednesday as high freight rates pushed down trading activity amid falling Comex and LME Copper prices. 


The next active Comex copper declined by 4¢/lb down by a penny to $4.23/lb today from Sep 1 while LME copper trended down by $56/mt to $9,256/mt over the week. 


High freight rates have dampened market sentiment with buyers holding back from striking deals despite strong demand for export-grade copper scrap. In the US, exporters face labor and transport shortages, which have affected flows to ports. Moreover, in the Southern and Southeast US, the after-effect of Hurricane Ida is also likely to impact scrap flows to ports in that region.


Bare bright’s (Barley’s) Davis Index weekly spread widened by 0.1¢/lb to 15.3¢/lb under the next active Comex copper contract. The spread for #1 copper wire & tube (Berry Candy), however, tightened by 0.6¢/lb to 25.8¢/lb under the next active Comex after a deal from further inland was heard at least 3¢/lb lower than the indexed spread.


Transaction prices for copper scrap grades declined in tandem with Comex copper on Wednesday with Bare bright (barley) falling by 4.4¢/lb to $4.077/lb fas US port and #1 copper wire & tube moving down by 3.7¢/lb to $3.972/lb fas.


The Davis Index weekly spread for export Birch Cliff remained unchanged at 51.8¢/lb under the next active Comex copper contract. The grade’s outright price decreased by 3.8¢/lb to $3.712/lb fas US port. 

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