The Davis Index for brass scrap increased marginally for some grades but lost its overall upward momentum due to a glut of copper scrap supply in the market.

 

The copper component of brass was slightly stronger over the week with brass mills reacting to the Comex market peak and subsequent fall, but market participants expect copper spreads to widen again in the near term.

 

The weekly Davis Index for 360-rod borings increased by 1.7¢/lb to $2.06/lb delivered US consumers and climbed by 0.9¢/lb for brass radiators to $1.67/lb delivered.  

 

The weekly Davis Index for the C-200 series alloy copper spread narrowed by 0.5¢/lb at 10.5¢/lb under the Comex spot contract, while the C-200 series zinc spread weakened by half-a-penny to 5.8¢/lb under the LME zinc cash contract on Friday.

 

The Comex spot copper contract was 6.3¢/lb higher at $2.913/lb on Friday from it close on August 21, while the spot LME zinc official contract increased by $79.50/mt from August 21 to close on Friday at $2,529.50/mt.

 

The copper market’s bull run has seen more copper entering the scrap stream, but recent volatility on the Comex has swung spreads back in the opposite direction for the red metal. The Comex market bounced back after a drop from its peak last week, allowing fear to enter the equation. However, the market rebounded soon after the drop, bringing some stability and allowing consumers to push the spreads wider.

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