US copper scrap spreads were unchanged Tuesday with unsettled markets seeking guidance amid the turmoil over the possible impact of the coronavirus outbreak on the supply chain.
The Davis Index spread for US Bare Bright copper scrap (Barley) delivered US consumer was unchanged from last week at $0.14/lb under the next-active month Comex contract. Spot pricing for bare bright decreased by 5¢/lb to $2.39/lb on Tuesday from last week’s price of $2.44 as the next-active month Comex market continues its downward slide that started on January 14.
The next active Comex contract price decreased to $2.545/lb Tuesday from $2.585/lb a week ago, losing 4¢/lb over the period. However, it was slightly higher than Monday’s close of $2.50/lb representing the first day since January 14 that the next active month Comex contract moved higher.
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 both was unchanged at $2.30/lb for #1 and $2.12/lb for #2 delivered US consumer.
With such uncertainty in the market, participants find it hard to pick a direction. For now, the status quo will have to do until a move in demand or supply can indicate the way forward.