Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

US export copper scrap spreads tightened across most grades this past week as suppliers await the return of Asian demand.


The Davis Index weekly spread for export #2 copper (birch/cliff) narrowed by 2.2¢/lb to 45.8¢/lb under the next active Comex contract. And the spread for bare bright (barley) tightened by 2.1¢/lb to 9.9¢/lb under Comex.


The next active Comex contract settled at $3.58/lb on Wednesday, slightly above $3.55/lb on Jan 27. 


Tightening spreads and a stable Comex meant that transaction prices for both grades rose on a weekly basis. #2 copper rose by 3.8¢/lb to $3.108/lb fas on Wednesday. Bare bright (barley) increased by 3.7¢/lb to $3.467/lb fas US port.


Still, the Davis Index spread for #1 copper wire and tube (berry/candy) widened by 1.1¢/lb to 23¢/lb under the next active Comex, with Wednesday’s transaction price unchanged from the prior week at $3.33/lb fas US port.


Market participants expect a diminished export activity for at least another week as exporters await cues from Asian markets, especially China, which is likely to resume imports after the Lunar New Year holiday than eds mid=month. 


With India reducing import duties on copper scrap this week to 2.5pc from 5pc previously, this market is gaining interest from exporters who are looking to diversify their destinations since China has become stricter about its imported scrap classifications.

Leave a Reply

Your email address will not be published.