US brass scrap prices moved lower Friday, while spreads were unchanged with no certainty in which way they’ll subsequently move.
The Davis Index for 360-rod borings scrap decreased by 9¢/lb to $1.76/lb from $1.85/lb, while Red brass (85:15) decreased to $1.82/lb from $1.95/lb. Brass radiators also decreased to $1.39/lb from $1.44/lb.
The Index for C260 (70:30) alloy scrap decreased to $1.94/lb on weakness in both the spot Comex copper exchange price and the three-month LME Zinc price.
The spread for C-200 series copper cash remained at 12¢/lb under Comex, unchanged from last week and the spread for C-200 series zinc cash was flat at 5.5¢/lb.
The next active COMEX price decreased to $2.51/lb on Friday from $2.68/lb last week. The three-month LME zinc cash price also dropped from $1.10/lb to $1.07/lb over the past seven days.
Outright pricing for US brass scrap decreased with very little sold, as most consumers have scheduled shipments through the end of February. Relative to demand, supply is sufficient.
Some market participants expect spreads to move in both directions, with the Comex exchange’s drop—and the impact on scrap flows because of lower pricing—making the case for narrowing spreads. Conversely, others believe spreads could widen, and consumers could take advantage of readily available industrial scrap, which tends to move through scrap processors’ yards irrespective of price.