The weekly spreads for US domestic copper scrap narrowed on Tuesday as currency fluctuations and lower Comex copper prices subdued market activity.
Comex copper closed today at $4.20/lb down by 15¢/lb from Aug 10. The Comex copper market has been subdued throughout August and has restricted spot deals.
The Davis Index spread for #1 copper wire & tube narrowed by 1.5¢/lb to 21.6¢/lb under the August Comex contract, with the grade’s weekly transaction price dropping by 13¢/lb to $3.98/lb delivered.
Spreads for US bare bright copper scrap (barley) tightened by 0.1¢/lb to 14.7¢/lb under the August Comex contract on Tuesday. Bare bright’s transaction price declined by 15¢/lb to $4.05/lb delivered US consumer.
For #2 light copper, the spread narrowed by 3.7¢/lb to 57¢/lb under the August Comex contract while its transaction price fell by 11¢/lb to $3.63/lb delivered US consumer.
Demand remained subdued this week as market participants tried to make sense of the steep drop in Comex copper. Some scrap yards are increasing their buying margins that hint at some softness in the market. Still, buyers are witnessing better demand on the export side, especially from China. With the dollar getting stronger and the fall in Comex copper, spreads are expected to tighten further.