The weekly spreads for US domestic copper scrap grades tightened on Tuesday after remaining flat or widening marginally last week.
The Comex has reversed its downward trend from the beginning of the year. It reached a low point on March 23, but since then the market has moved into positive territory. Since May 27, when it reached $2.38/lb, the Comex has increased every day.
The Comex spot market closed at $2.60/lb on Tuesday, up from $2.49/lb on June 2.
The spread for US bare bright copper scrap (barley) delivered US consumer, was flat at 7.6¢/lb, under the June Comex contract on Tuesday, while the weekly Davis Index for bare bright increased by 10.8¢/lb to $2.522lb delivered US consumer.
The spread for #1 copper (berry/candy) was better at 13.9¢/lb a 0.2¢/lb increase under the June Comex contract, with the weekly index for the grade increasing by 11.2¢/lb to $2.461/lb.
The spread for #2 copper chops narrowed to 25¢/lb, better by 1.6¢/lb under the June Comex contract. The index for #2 chops increased by 12.6¢/lb to $2.35/lb.
Copper scrap flows started to pick up but did not last long as consumers hoping to take advantage of the Comex market’s bull run were unable to capture more of the available scrap.
Market participants believe that some scrap dealers are holding on to copper scrap in the hope of even higher numbers because of the current run on the Comex. Only time will tell if this strategy pays off.