US weekly export copper scrap spreads varied on Wednesday as high freight rates pushed down trading activity amid falling Comex and LME Copper prices.
The next active Comex copper declined by 4¢/lb down by a penny to $4.23/lb today from Sep 1 while LME copper trended down by $56/mt to $9,256/mt over the week.
High freight rates have dampened market sentiment with buyers holding back from striking deals despite strong demand for export-grade copper scrap. In the US, exporters face labor and transport shortages, which have affected flows to ports. Moreover, in the Southern and Southeast US, the after-effect of Hurricane Ida is also likely to impact scrap flows to ports in that region.
Bare bright’s (Barley’s) Davis Index weekly spread widened by 0.1¢/lb to 15.3¢/lb under the next active Comex copper contract. The spread for #1 copper wire & tube (Berry Candy), however, tightened by 0.6¢/lb to 25.8¢/lb under the next active Comex after a deal from further inland was heard at least 3¢/lb lower than the indexed spread.
Transaction prices for copper scrap grades declined in tandem with Comex copper on Wednesday with Bare bright (barley) falling by 4.4¢/lb to $4.077/lb fas US port and #1 copper wire & tube moving down by 3.7¢/lb to $3.972/lb fas.
The Davis Index weekly spread for export Birch Cliff remained unchanged at 51.8¢/lb under the next active Comex copper contract. The grade’s outright price decreased by 3.8¢/lb to $3.712/lb fas US port.