US export copper scrap spreads tightened on all grades over the past week.
The market is in turmoil as domestic demand remains tepid despite strengthening exports. The latter has contributed to export spreads tightening amid better demand from China and South East Asia. However, the range of spreads remains wide.
Transactional Comex prices approached their yearly high of $3.20/lb again this week with the next active Comex contract closing on Wednesday at $3.198/lb, up from $3.15/lb, on Nov 10.
The weekly Davis Index for #1 copper wire and tube surged by 5.9¢/lb to $2.943/lb fas US port, while the index for #2 copper stepped up by 4.7¢/lb to $2.776/lb fas on Wednesday. The bare bright (barley) index increased by 5.9¢/lb to $3.043/lb fas US port.
The Davis Index spread for #1 copper wire, and tube (berry/candy) was tighter at 25.5¢/lb fas under the next active Comex contract, better by 1.5¢/lb. The spread for #2 copper (birch/cliff) narrowed by 0.3¢/lb to 42.2¢/lb fas, under the next active month on Comex. The spread for bare bright (barley) was stronger by 1.5¢/lb at 15.5¢/lb fas under the next active Comex contract.
US domestic suppliers with access to the export market are better positioned than the land-locked counterparts as the exports demand seems to be improving.