The weekly spreads for US domestic copper scrap grades held unchanged for the second successive week as the market sought direction in a subdued market and volatile Comex copper prices.
The Comex copper spot market settled at $4.15/lb on Tuesday, up by 5¢/lb from Mar 9. Comex copper prices resumed their climb to late-February highs late last week after correcting down by around 8¢/lb.
The Davis Index spread for US bare bright copper scrap (barley) was flat at 16.7¢/lb under the March Comex contract on Tuesday, with the transaction price for bare bright climbing by 5¢/lb to $3.983/lb delivered US consumer.
The spread for #1 copper wire & tube held unchanged at 27.5¢/lb under the March Comex contract, with the weekly transaction price for the grade rising by 5.5¢/lb to $3.875/lb delivered.
The spread for #2 Light copper remained at 49¢/lb under the March Comex contract while the transaction price increased by 5¢/lb to $3.65/lb delivered US consumer.
High freight costs continue to challenge delivery schedules and are discouraging trade, according to market participants. Supply remains abundant as dealers try to benefit from the higher Comex copper market. However, restricted buying is keeping spreads flat this week.