US weekly brass scrap spreads widened after buyers held off on purchases despite Comex copper inching higher during the week.
The weekly Davis Index for the C-200 series alloy copper spread widened by 1.1¢/lb to 11¢/lb under the Comex spot contract. The C-200 series zinc spread widened by 0.8¢/lb to 5.3¢/lb, under the LME zinc cash contract.
Spreads are expected to remain rangebound through February as most consumers have already locked-in their volumes for the month.
Some buyers are not likely to re-enter the market before April as they have secured volumes to last through March. Sellers believe that spreads are likely to widen further if Comex copper rises substantially in February, otherwise buyers seem to be satisfied with the current ranges and price levels.
The weekly Davis Index for 360-rod borings increased by 5.2¢/lb to $2.536/lb delivered US consumer. Brass radiators slipped by 1¢/lb to $1.99/lb delivered on Friday.
The Comex spot copper contract increased by 6¢/lb to $3.63/lb from its close on Jan 29, while the spot LME zinc official contract rose by $71.50/mt from Jan 29 to close at $2,636.50/mt on Friday.