Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

The weekly spreads for US domestic copper scrap grades continued to feel the pressure from the domestic market’s tight supply of the material. Copper scrap supply, especially #1 grades, is fragile, forcing consumers to tighten spreads even as the Comex market trends higher.


The Comex spot market closed at $2.60/lb on Tuesday, up from $2.56/lb on June 9. The Comex market had reached June’s peak at $2.66/lb on June 10.  


The spread for US bare bright copper scrap (barley) delivered US consumer, was tighter at 6.8¢/lb, under the June Comex contract on Tuesday, while the weekly Davis Index for bare bright increased by 1.5¢/lb to $2.535/lb delivered US consumer.


The spread for #1 copper (berry/candy) was better at 13.7¢/lb a 0.2¢/lb increase under the June Comex contract, with the weekly index for the grade was flat at $2.461/lb.  


The spread for #2 copper chops narrowed to 23.7¢/lb, better by 2.9¢/lb under the June Comex contract. The index for #2 chops increased by 1.5¢/lb to $2.365/lb.


Market participants are wondering how much more could spreads narrow, as tight supply continues to outpace demand, before scrap prices becomes a burden on potential sales.

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