The weekly Davis Index for brass scrap was higher by 1-8¢/lb for most grades on Thursday in a week where the Comex exchange price pushed higher than its previous best in early January.
The Comex spot market has traded its volatile pattern seen from mid-March to a steady pattern of increase since June 16 on more economic activity and copper warehouse inventories that have fallen to pre-pandemic levels.
Scrap generation has increased against better demand leaving the spreads relatively flat from a week ago.
The weekly Davis Index for the C-200 series alloy copper spread was wider by 0.1¢/lb at 6.5¢/lb under the Comex spot contract, while the C-200 series zinc spread was wider at 3.3¢/lb under the LME zinc spot contract, worse by 0.2¢/lb.
The weekly Davis Index for 360-rod borings increased by 4.1¢/lb to $1.891/lb delivered US consumers and moved higher by 1.6¢/lb for brass radiators to $1.636/lb delivered. The index for red brass (85:15) solids rose by 8¢/lb to $2.43/lb delivered US consumers.
The Comex cash copper contract increased by 11¢/lb at $2.88/lb on Thursday up from $2.77/lb on July 6, while the spot LME zinc official contract increased by $125/mt on Thursday to $2,145/mt from $2,020/mt on July 3.
Sales of ammunition, most of which are made of brass, have been strong recently, benefiting from the gun and ammunition industry growth of 13.5pc over the past five years. Sales of ammunition tend to spike in times of civil unrest or an impending change in political office, creating the potential for robust demand for brass based on current events.