US export copper scrap spreads were flat over the past week but have reversed their trend to a slightly downward direction. The Comex market pushed higher every day of the past week and with Chinese quotas filling up, spreads have started to widen out.
The next active Comex contract closed on Wednesday at $2.65/lb, up 6¢/lb from $2.59/lb on June 17.
The weekly Davis Index for #1 copper wire and tube, #2 copper, and bare bright (barley) all increased by 7¢/lb to $2.51/lb fas US port, $2.38/lb fas, and $2.58/lb fas, respectively.
The Davis Index spread for #1 copper wire and tube (berry/candy) was wider at 14.1¢/lb fas US ports under the next active Comex contract, worse by 0.3¢/lb. The spread for #2 copper (birch/cliff) also was wider by 0.5¢/lb at 27.7¢/lb fas US port, under the next active month on Comex. The spread for bare bright (barley) was worse by 0.3¢/lb at 7.2¢/lb fas under the next active Comex contract.
Spreads began to widen as the Comex market continues to climb higher against less demand from Asia, particularly China, a country that has run out of space for the last batch of quotas before the July 1 reclassification date. However, the deadline now looks to have moved back to September.