The weekly spreads for US domestic copper scrap grades were flat or wider on Tuesday. The Comex market continued gaining strength amid weekly volatility, with its spot price hitting the high mark for the past two weeks on Tuesday.
The Comex spot market closed at $2.49/lb on Tuesday, up from $2.42/lb on May 26. The market has now reached a point where Tuesday’s closing price was higher than the average for the first five months of the year. The Comex spot market peaked at $2.87/lb in January 2020 and hit its low at $2.10/lb in late March.
The spread for US bare bright copper scrap (barley) delivered US consumer, widened to 7.6¢/lb, lower by 0.3¢/lb under the June Comex contract on Tuesday, while the weekly Davis Index for bare bright increased by 4.8¢/lb to $2.414/lb delivered US consumer.
The spread for #1 copper (berry/candy) was lower at 14.1¢/lb a 1.2¢/lb decline under the June Comex contract, with the weekly index for the grade increasing by 3.5¢/lb to $2.349/lb.
The spread for #2 copper chops narrowed to 26.6¢/lb, better by 0.05¢/lb under the June Comex contract. The index for the material increased by 6¢/lb to $2.224/lb.
Copper scrap flows are starting to pick up against moderate demand levels from consumers, as the US economy reopens, allowing the spreads to widen slightly. Trade scrap (plumbers, electricians, etc.) volumes picked up the most in May, by more than 20pc, from previous months, triggered by the rise is the Comex market.