US weekly export copper scrap spreads varied on Wednesday in sluggish trading and a fall in Comex copper prices.
The Davis Index weekly spread for export #2 copper (birch/cliff) tightened by 0.5¢/lb to 63.4¢/lb under the next active Comex copper contract while bare bright’s (barley) spread tightened by 2.1¢/lb to 19.5¢/lb under Comex.
The next active Comex copper contract fell by 16¢/lb to $4.56/lb today after soaring by 20¢/lb from May 5 to $4.72/lb last week.
A drop in Comex copper pushed down the transaction prices for copper scrap grades on Wednesday with #2 copper decreasing by 15¢/lb to $3.94/lb fas and bare bright (barley) dropping by 19¢/lb to $4.38/lb fas US port.
The Davis Index spread for #1 copper wire and tube (berry/candy) was flat at 29¢/lb under the next active Comex, with Wednesday’s transaction price moving down by 16¢/lb to $4.28/lb fas US port for the grade.
Strong demand from Europe and China has made US exporters hopeful about improved trading activity in the near term. Moreover, a correction in Comex and LME copper is anticipated to bring more buyers back into the market. Demand for scrap grades such as mixed motors continues to increase with offers for this grade ranging as high as 58¢/lb.