US weekly export copper scrap spreads tightened on Wednesday following new deals as more buyers returned to the market.
Demand for grades like bare bright (barley) lifted the export market which had witnessed sporadic deals until last week. China has returned to the market and suppliers are bullish about sales of clean copper grades to the country.
The Davis Index weekly spread for export #2 copper (birch/cliff) narrowed by 5¢/lb to 59.7¢/lb under the next active Comex copper contract while bare bright’s (barley) spread tightened by 3¢/lb to 17.5¢/lb under Comex.
The next active Comex copper contract decreased by 6¢/lb to $4.53/lb today compared to Jun 1.
Transaction prices for copper scrap grades on Wednesday decreased with #2 copper slipping by 1¢/lb to $3.93/lb fas and bare bright (barley) dropping by 3¢/lb to $4.36/lb fas US port.
Weekly spreads for #1 copper wire and tube (berry/candy) tightened by 3¢/lb to 26.5¢/lb under the next active Comex, with Wednesday’s transaction price for this grade moving down by 3¢/lb to $4.26/lb fas US port for the grade.
Still, demand from Asia (ex-China) remains subdued amid a resurgence of COVID-19 infections in countries like India and Malaysia. In China too, a 14-day COVID-19 related lockdown period imposed in Guangdong could cause shipping delays at Yantian, Shekou, and Nansha ports, though suppliers do not expect demand to diminish despite these restrictions.