US copper scrap spreads were unchanged Tuesday as unsettled markets sought guidance over potential supply chain disruptions and the US stock market selloff.
Spreads for US Bare Bright copper scrap (Barley) delivered US consumer were flat at $0.14/lb under the next-active month Comex contract. Spot pricing for bare bright landed at $2.44/lb today, down from last week’s $2.65 as the next-active month COMEX market felt the pressure of global macroeconomic concerns.
The next active Comex contract price decreased to $2.58/lb Tuesday from $2.79/lb a week ago, losing 21¢/lb over the week-long period.
Spreads for #1 copper (Berry/Candy) and #2 copper (Birch/Cliff) were unchanged at $0.24/lb and $0.43/lb, respectively, under COMEX. Spot pricing for #1 delivered US consumer held at $2.34/lb and was $2.15/lb for #2 delivered US consumer.
Market participants expect the spreads to tighten, but the market is remaining cautious while looking for answers and impacts on the global economy.
The US stock market selloff, the potential impeachment of US President Trump, and the coronavirus outbreak have dominated market conversations as the three issues and their outcomes could determine the market direction in the short term.