The weekly spreads for US domestic copper scrap were rangebound on Tuesday as demand buyers began returning to the market and Comex copper prices declined.
Comex copper spot prices had increased by around 25¢/lb to $4.80/lb on May 11 compared to the previous week but declined by 6¢/lb today to settle at $4.74/lb.
The Davis Index spread for US bare bright copper scrap (barley) tightened by 1.1¢/lb to 18.4¢/lb under the May Comex contract on Tuesday, with its transaction price dropping by 5.8¢/lb to $4.55/lb delivered US consumer.
Spreads for #1 copper wire & tube tightened by 0.1¢/lb to 28.4¢/lb under the May Comex contract, with the grade’s weekly transaction price falling by 7¢/lb to $4.45/lb delivered.
For #2 light copper, the spread widened by 0.5¢/lb to 56.8¢/lb under the May Comex contract while the transaction price for #2 light declined by 11¢/lb to $4.13/lb delivered US consumer.
The recent fall in Comex copper prices and tightness of some grades such as #1 copper has brought some buyers back to the market. Still, high freight costs and a shortage of trucks are hindering market activity. The disappointing US macroeconomic data this month that reflects rising inflation and lower employment has also kept more participants from returning to active trades.