US export copper scrap spreads were mostly flat over the past week, giving up the slightest ground against higher Comex market prices. The Comex market pushed higher every day in the past week. 

 

The next active Comex contract closed on Wednesday at $2.73/lb, up 8¢/lb from $2.65/lb on June 24.

 

The weekly Davis Index for #1 copper wire and tube increased by 7¢/lb to $2.58/lb fas US port, while the index for #2 copper jumped by 7¢/lb to $2.45/lb fas on Wednesday. The index for bare bright (barley) increased by 8¢/lb to $2.66/lb fas US port.

 

The Davis Index spread for #1 copper wire and tube (berry/candy) was wider by 1.3¢/lb at 15.4¢/lb fas US ports under the next active Comex contract. The spread for #2 copper (birch/cliff) was wider by 0.3¢/lb at 28¢/lb fas US port, under the next active month on Comex while the spread for bare bright (barley) was worse by 0.2¢/lb at 7.24¢/lb fas under the same contract. 

 

Consumers across the globe expect the spreads to widen further, against the rising Comex now that China has decided to continue using import quotas through the end of 2020 and brought some stability to the market until the end of this year. 

 

Market participants believe this was the right move in such uncertain times and consumers are now regrouping and reevaluating their buying programs moving forward. Making the change initially set for July 1 would have been disastrous for scrap flows and the economic recovery globally.

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