US weekly export copper scrap spreads tightened slightly for most grades after Comex copper prices declined on Wednesday.
The Davis Index weekly spread for export #2 copper (birch/cliff) narrowed by 2.2¢/lb to 56.5¢/lb under the next active Comex copper contract while bare bright’s (barley) spread tightened by 0.2¢/lb to 17.3¢/lb under Comex.
The Comex copper market declined over the past week on a strengthening dollar with the next active Comex contract declining by almost 7¢/lb from last week to close at $4/lb on Wednesday.
Transaction prices for all grades declined this week with #2 copper falling by 4¢/lb to $3.44/lb fas and bare bright (barley) dropping by 7.2¢/lb to $3.822/lb fas US port.
The Davis Index spread for #1 copper wire and tube (berry/candy) tightened 0.1¢/lb to 25.2¢/lb under the next active Comex, with Wednesday’s transaction price declining by 7¢/lb to $3.75/lb fas US port for the grade.
Exporters anticipate demand for copper scrap to pick up pace by mid-April when Asian buyers are expected to return to the market.
Some Asian buyers who are still awaiting some of their loads that were stuck in the Suez Canal over the past week expect to get those volumes over the next few weeks. This has created a marginal scarcity of copper scrap fas in Europe. US exporters, however, believe that last week’s crisis in the Suez Canal will have little effect on trade with Asian buyers next month.