US weekly export copper scrap spreads trended sideways on Wednesday following volatility in Comex copper prices.
The next active Comex copper contract increased by 18¢/lb to $4.46/lb today from Jul 21. LME Copper cash contracts have also increased over the past week because of which exporters, as well as buyers, have refrained from spot deals.
Bare bright’s (Barley’s) Davis Index weekly spread widened by 0.5¢/lb to 19¢/lb under the next active Comex copper contract after remaining unchanged for two weeks and #1 copper wire & tube (Berry Candy) widened by 0.3¢/lb to 26.8¢/lb under the next active Comex.
Transaction prices for copper scrap grades increased on Wednesday in tandem with Comex copper. Bare bright (barley) jumped by 17.8¢/lb to $4.274/lb fas US port and #1 copper wire & tube rose by 18.1¢/lb to $4.196/lb fas.
#1 copper (Candy) and #2 Copper (Birch Cliff) continued to sell on strong demand, especially in Asia. Still, the overall copper scrap export market remained quiet with only sporadic quotes. Demand in Asia has also weakened due to the high LME Copper prices. Spreads are expected to widen if this trend continues, especially since orders being delivered now are not likely to be melted until September in Europe due to the summer vacation and in China due to the recent floods in the region.
The Davis Index weekly spread for export Birch Cliff narrowed by 2¢/lb to 58¢/lb under the next active Comex copper contract on strong demand and sales of the material. The grade’s outright price increased by 20¢/lb to $3.88/lb fas US port.