US export copper scrap spreads widened across all grades while prices increased as the Comex market works back to its peak of $3.20/lb. The market, which is still struggling with excess supply and weak demand, was quiet over the past week heading into the US presidential elections.
The next active Comex contract closed on Wednesday at $3.10/lb, up from $3.06/lb, a week ago.
The weekly Davis Index for #1 copper wire and tube climbed by 2.9¢/lb to $2.81/lb fas US port, while #2 copper stepped up by 3.4¢/lb to $2.68/lb fas on Wednesday. The bare bright (barley) index increased by 1.9¢/lb to $2.92/lb fas US port.
The Davis Index spread for #1 copper wire, and tube (berry/candy) worsened by 0.7¢/lb to 29¢/lb fas US ports under the next active Comex contract. The spread for #2 copper (birch/cliff) widened by 1.4¢/lb to 43.2¢/lb fas US port, under the next active month on Comex, while the spread for bare bright (barley) was weaker by 2.7¢/lb at 19¢/lb fas under the next active Comex contract.
The market is still working to understand the impact of the reclassification of scrap into China and is especially struggling with the high cost and the lack of freight into China.