US weekly export copper scrap spreads were unchanged on Wednesday following a weakening export market and a downtrend in Comex copper prices.
The next active Comex copper contract decreased by 14¢/lb to $4.32/lb today from Jul 28. LME Copper cash contracts have also stabilized over the past week as importers have stepped back amid subdued trade.
Bare bright’s (Barley’s) Davis Index weekly spread held unchanged at 19¢/lb under the next active Comex copper contract and #1 copper wire & tube (Berry Candy) was flat at 26.8¢/lb under the next active Comex.
Transaction prices for copper scrap grades declined on Wednesday with Bare bright (barley) falling by 13.7¢/lb to $4.137/lb fas US port and #1 copper wire & tube dropping by 13.9¢/lb to $4.057/lb fas.
Some deals for #1 copper chops to China were heard in the US market with offers at 23-24¢/lb under the August Comex copper contract. Honey continued to be traded in the Asian markets with fas US ports prices to India heard at around 65pc of LME copper cash. Delivered India prices for this material from the European and UK markets were higher amid supply tightness from these destinations.
The Davis Index weekly spread for export Birch Cliff remained at 58¢/lb under the next active Comex copper contract. The grade’s outright price decreased by 16¢/lb to $3.72/lb fas US port.
The lack of trade in the US export market is also being spurred by rising freight costs as well as uncertainty over China’s policies towards curbing rising commodity prices. Still, some Asian countries like India have preferred the US over Europe to import copper scrap as freight rates from the latter have risen almost three-fold, making purchases from that region more expensive.