The weekly spreads for US domestic copper scrap widened by around a penny on Tuesday on softening demand and an inactive market.
Comex copper spot prices remained strong after surging by over 30¢/lb last week, with the market settling at $4.55/lb today, up 4¢/lb from Apr 27.
The Davis Index spread for US bare bright copper scrap (barley) widened by 0.8¢/lb to 18.8¢/lb under the May Comex contract on Tuesday, with the transaction price for this grade rising by 3¢/lb to $4.36/lb delivered US consumer.
Spreads for #1 copper wire & tube widened by 1.4¢/lb to 27.4¢/lb under the May Comex contract, with its weekly transaction price increasing by 2.6¢/lb to $4.276/lb delivered.
For #2 light copper, the spread widened by 0.3¢/lb to 55.6¢/lb under the May Comex contract, while the transaction price for #2 light rose by 3.7¢/lb to $3.994/lb delivered US consumer.
Domestic copper scrap demand has softened since the beginning of May, as soaring prices are keeping buyers away. The inactivity has widened spreads after the market resisted an initial surge in Comex copper. High transportation costs due to a shortage of trucks and the subsequent delays in delivery are adding to domestic copper scrap buyers’ resistance.