US weekly export copper scrap spreads narrowed on Wednesday as trade picked up amid lower Comex and LME copper prices.
The next active Comex copper trended flat, inching down by a penny to $4.27/lb today from Aug 25.
Copper scrap exports are picking up pace amid healthy scrap flows and increasing inquiries from Europe and Asia.
Bare bright’s (Barley’s) Davis Index weekly spread narrowed by 1.4¢/lb to 15.2¢/lb under the next active Comex copper contract with some deals heard at around 14-14.5¢/lb under the next active Comex for this grade. The index for #1 copper wire & tube (Berry Candy), tightened by 0.7¢/lb to 26.4¢/lb under the next active Comex.
Transaction prices for copper scrap grades also climbed on Wednesday with Bare bright (barley) rising by 2¢/lb to $4.121/lb fas US port and #1 copper wire & tube moving up by 1.3¢/lb to $4.01/lb fas.
The Davis Index weekly spread for export Birch Cliff tightened by 2.3¢/lb to 51.8¢/lb under the next active Comex copper contract. The grade’s outright price increased by 2¢/lb to $3.75/lb fas US port.
China continues to remain in the market for clean copper grades, with a sale of a #2 copper chops cargo at 99pc purity heard at spreads as tight as 39¢/lb under spot Comex cash.
Demand for US copper scrap remains strong, especially in South Asia where buyers are looking to strike deals this week while the prices for Comex copper and LME copper remain on the lower side. The strength in demand has caused spreads to tighten as exporters continue to boost their sales.
Cheaper freight costs from the US, when compared to the UK and Europe are making the former a preferred destination for these buyers this week. Still, the congestion at California ports, a key port for exports to Asia, is causing some concern over delivery and loading times for cargoes.