The Davis Index for brass scrap was higher for all grades on Friday after the Comex market broke the $3/lb barrier this week, for the first time since June 2018.
The copper component of brass was weaker over the week as brass mills could secure material for the balance of August and early September while they continued to push the spreads wider.
The weekly Davis Index for 360-rod borings increased by 7.9¢/lb to $2.043/lb delivered US consumers and climbed for brass radiators by 0.8¢/lb to $1.668/lb delivered. The index for red brass (85:15) solids increased by 1.3¢/lb to $2.503/lb delivered US consumers.
The weekly Davis Index for the C-200 series alloy copper spread weakened by 1¢/lb to 11¢/lb under the Comex spot contract, while the C-200 series zinc spread was flat at 5¢/lb under the LME zinc cash contract.
The Comex spot copper contract increased by 6.3¢/lb from August 14 to close Friday at $2.913/lb, while the spot LME zinc official contract increased by $90/mt from last week to close at $2,450/mt on Friday.
The bull run in the copper market has more copper scrap entering the stream even though consumption and demand are weak for finished copper products. The Comex is reacting to government stimulus initiatives out of China and a weaker US dollar. The prices at present are being driven more by financial factors than physical supply and demand prompting some scrap suppliers to ask why their material isn’t worth more against a robust copper cathode price.