US weekly brass scrap spreads trended sideways on Friday following limited supply and an uptrend in Comex copper and LME Zinc prices.
The Comex spot copper contract closed at $4.54/lb today, up by 3¢/lb from May 21, while the spot LME zinc official cash contract increased by $89.50/mt to $3,070.40/mt. Comex and LME Zinc prices increased with other base metals on Friday following reports of President Biden planning to unveil his $6tn budget for this financial year.
Demand for brass remains robust but limited supply and high freight prices continue to hamper deals and have kept the C-200 spreads rangebound. The weekly Davis Index for C-200 series alloy’s copper spread widened 0.2¢/lb to 12.2¢/lb under the Comex copper spot contract, while the C-200 series zinc spread, widened by 0.4¢/lb to 5.9¢/lb under the LME zinc cash contract.
Some buyers are heard to be paying spreads as tight as 10¢/lb under the Comex copper spot and 5¢/lb under the LME Zinc cash contract to procure material amid a dearth of supply. Others have reportedly supplemented some of their brass volumes with bare copper and primary zinc to fill their volumes. Scrapyards have also seen brass flows reducing into their yards over the past week as high freight costs and labor shortages continue to trouble both buyers and suppliers.
Limited supply has also seen transaction prices creeping up for most grades this week, with the weekly Davis Index for 360-rod borings increasing by 2.4¢/lb to $3.164/lb delivered US consumer. Brass radiators inched up by 0.3¢/lb to $2.59/lb delivered, while Red brass solids increased by 3.4¢/lb to $3.31/lb delivered.