The weekly spreads for US domestic copper scrap grades remain tight but leveled off this past week on a more substantial Comex market against weak global demand.
Although copper scrap supply is tight, demand is weak, and some consumers have exited the market, at least in the near term.
The Comex spot market closed Tuesday at $2.66lb, up from $2.56/lb on June 16, marking a steady run-up from last week.
The spread for US bare bright copper scrap (barley) delivered US consumer was weaker at 6.9¢/lb, under the June Comex contract on Tuesday, decreasing by only one-tenth of a cent. The weekly Davis Index for bare bright increased by 5.6¢/lb to $2.591lb delivered US consumer.
The spread for #1 copper (berry/candy) was flat at 13.7¢/lb under the June Comex contract, with the weekly index for the grade at $2.523/lb, marking an increase of 6.2¢/lb.
The spread for #2 copper chops narrowed to 23.4¢/lb, rising by 0.3¢/lb under the June Comex contract. The index for #2 chops increased by 6.1¢/lb to $2.426/lb.
Demand remains soft and supply tight. Demand in Asia is weaker this week compared to the last couple of weeks, but US consumers appear concerned by spreads widening in fear of flows diminishing beyond what is necessary. Consumers are looking to keep the ranges where they currently are against a rising Comex, and hope to fill inventory gaps. However, spreads could begin widening for the grades in weaker demand.