The weekly spreads for US domestic copper scrap grades tightened on Tuesday as the Comex market continued its roller-coaster run. Comex peaked at $.246/lb last week after starting it at around $2.42/lb and going on to end the week in the same range.
The Comex spot market closed at $2.438/lb on the spot market Tuesday, up from $2.423/lb on May 19.
The spread for US bare bright copper scrap (barley) delivered US consumer narrowed to 7.3¢/lb, better by 0.3¢/lb under the May Comex contract on Tuesday, while the weekly Davis Index for bare bright increased by 0.6¢/lb to $2.366/lb delivered US consumer.
The spread for #1 copper (berry/candy) was better at 12.9¢/lb a 2¢/lb improvement under the May Comex contract, with the index for the grade increasing by 3.9¢/lb to $2.314/lb delivered.
The spread for #2 copper chops narrowed to 27.1¢/lb, better by 0.08¢/lb under the May Comex contract and the index for the material increased by 2.1¢/lb to $2.164/lb delivered.
Supply has become increasingly scarce due to the COVID-19 pandemic. China and its neighbors are 6-8 weeks ahead of the US in terms of recovery from shutdowns and are experiencing the first round of increase in demand. These countries could look to the US for extra scrap material to meet this demand, forcing the spreads to narrow further.