US copper scrap export spreads were mixed on strong demand from China but low shipping container availability.
Transactional prices moved higher on Wednesday, with the next-active Comex contract closing at $2.587/lb, up from $2.570/lb a week ago.
The Davis Index spreads for #1 copper wire and tube (Berry/Candy) remained unchanged at 22¢/lb fas US port, while spreads for #2 copper (Birch/Cliff) narrowed to 37¢/lb fas US port, under Comex. Bare Bright (Barley) spreads widened to 13¢/lb fas US ports, under Comex, weaker by 1¢/lb.
The weekly Davis Index for #1 and #2 copper scrap grades increased slightly on Wednesday with #1 copper settling at $2.36/lb fas US port from $2.34/lb on Feb 26. The index for #2 copper rose from $2.173/lb on Feb 26 to $2.217/lb fas US port on Wednesday. The spreads for Bare Bright (Barley) widened making it lose its1¢/lb gains in the Comex market and resulting in the Davis Index for the grade remaining unchanged at $2.43/lb fas US port.
The demand for base metals is growing as 75pc of China’s businesses return to a regular schedule. Market participants expect demand to strengthen as shipping containers become more readily available soon and copper shipments increase.