US export copper scrap spreads held over the week as the Comex market strengthened, widening US domestic spreads, and allowing export spreads to remain unchanged.
The next active Comex contract closed on Wednesday at $2.48/lb, up 10¢/lb from $2.38/lb on May 27.
The weekly Davis Index for #1 copper wire and tube increased by 11¢/lb to $2.36/lb fas US port, while the index for #2 copper jumped by 10¢/lb to $2.20/lb fas on Wednesday. The index for bare bright (barley) increased by 10¢/lb to $2.41/lb fas US port.
The Davis Index spread for #1 copper wire and tube (berry/candy) was flat at 11.4¢/lb fas US ports under the next active Comex contract, while the spread for #2 copper (birch/cliff) remained the same at 28.3¢/lb fas US port, under the next active month on Comex. The spread for bare bright (barley) narrowed to 7.5¢/lb fas under the next active Comex contract, better by 0.1¢/lb.
Demand for copper is more robust in China and Southeast Asia than in the US as Asia is ahead of the US reopening efforts by two months or more. This is welcome news for market participants who are hopeful about better demand from the US’s reopening efforts in the near term.