The Davis Index for brass scrap moved up for most grades in a volatile Comex market.
The Comex market has gained 38¢/lb since the beginning of June, allowing spreads to widen, as scrap sellers look to convert the material into cash on concerns around the latest macroeconomic data.
The weekly Davis Index for 360-rod borings increased by 1.2¢/lb to $1.936/lb delivered US consumers and was flat for brass radiators at $1.67/lb delivered. The index for red brass (85:15) solids rose by 1.2¢/lb to $2.53/lb delivered US consumers on Friday.
The weekly Davis Index for the C-200 series alloy copper spot spread was broader by 0.1¢/lb at 7¢/lb under the Comex spot contract, while the C-200 series zinc cash spread widened by 0.3¢/lb to 4.5¢/lb under the LME zinc cash contract.
The Comex spot copper contract was two cents lower at $2.86/lb on Friday from it close on July 24, while the official LME zinc cash contract increased by $105.50/mt on Friday to $2,299/mt from $2,193.50/mt on July 24.
Macroeconomic factors dominated the conversations in the market with the US economy contracting by 33pc, the worst ever recorded, in Q2 2020. News of that nature and magnitude reduces confidence and can change the sentiments of market participants from one of growth to that of survival, impacting the ability of the economy to recover.