The weekly spreads for US domestic copper scrap grades were weaker on Tuesday, while prices ticked down against a Comex market that hit its high point for the year during the week.
The Comex spot market closed at $3.055/lb on Tuesday, up from $3.05/lb on September 15, but lower than the year’s peak of $3.12/lb on September 18.
The spread for US bare bright copper scrap (barley) delivered US consumer was wider by 0.9¢/lb at 14.5¢/lb, under the September Comex contract on Tuesday, while the weekly Davis Index for bare bright decreased by 2¢/lb to $2.918/lb delivered US consumer.
The spread for #1 copper (berry/candy) weakened by 0.9¢/lb to 22¢/lb, under the September Comex contract, with the weekly index for the grade moving down by 1.4¢/lb to $2.838/lb.
The spread for #2 Light copper weakened by 0.1¢/lb to 42.5¢/lb under the September Comex contract. The index for #2 Light decreased by 0.9¢/lb to $2.63/lb.
The copper scrap market has diverged, with the financial side peaking over the week while the physical scrap business struggles against no demand in an oversupplied market. Issues abound beyond the supply and demand curve, with tight and expensive freight cost, cash concerns, and theft issues. Now that copper is above the $3/lb mark, it is once again the thieves’ target metal looking for quick untraceable cash.