US export copper scrap spreads tightened for most grades on Wednesday. The copper scrap export market is experiencing some volatility as suppliers try to gauge China’s impact in the market once it actively begins purchasing scrap.
The next active Comex contract closed on Wednesday at $3.3095/lb, up from $3.198/lb, on Nov 18.
The weekly Davis Index for #1 copper wire and tube rose by 11.5¢/lb to $3.058/lb fas US port, while the index for #2 copper stepped up by 14.5¢/lb to $2.921/lb fas on Wednesday. The bare bright (barley) index increased by 11.2¢/lb to $3.155/lb fas US port.
The Davis Index spread for #1 copper wire, and tube (berry/candy) was tighter at 25.1¢/lb fas under the next active Comex contract, better by 0.4¢/lb. The spread for #2 copper (birch/cliff) narrowed by 3.4¢/lb to 38.8¢/lb fas, under the next active month on Comex. The spread for bare bright (barley) was stronger by 0.1¢/lb at 15.4¢/lb fas under the next active Comex contract.
Exporters are more comfortable shipping high quality grades such as barley into China, but many have chosen to ship via brokers for better cash terms.