US weekly export copper scrap spreads tightened for most grades on Wednesday amid increasing interest from Asian markets.
The Davis Index weekly spread for export #2 copper (birch/cliff) narrowed by 1.3¢/lb to 55.5¢/lb under the next active Comex copper contract while bare bright’s (barley) spread tightened by 0.6¢/lb to 17.1¢/lb under Comex.
The Comex copper market began climbing again this week as the dollar softened with the next active Comex contract rising by 6¢/lb from last week to close at $4.12/lb on Wednesday.
Transaction prices for all grades increased this week with #2 copper rising by 7¢/lb to $3.56/lb fas and bare bright (barley) climbing by 6¢/lb to $3.94/lb fas US port.
The Davis Index spread for #1 copper wire and tube (berry/candy) tightened by 1.8¢/lb to 23.7¢/lb under the next active Comex, with Wednesday’s transaction price increasing by 8¢/lb to $3.88/lb fas US port for the grade.
Active buyer interest from Asia led to tighter export spreads this week. Improving demand, paired with a stronger Comex copper market, is expected to buoy supplier sentiment this month. Still, demand from China remains subdued and suppliers with volumes of #2 copper are now looking at alternate destinations for the grade after China issued its new scrap specifications.