Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

US weekly brass scrap spreads were rangebound on Friday as demand improved and Comex copper, as well as LME Zinc, corrected from their all-time highs. 


The Comex spot copper contract declined by 10¢/lb from a record high last week to close at $4.66/lb on Friday. The spot LME zinc official contract decreased by $49/mt to $2,924/mt today.


Demand for brass improved this week as more buyers took cues from the slight correction to re-enter the market. Brass spreads, which successfully resisted the highs of last week trended flat this week too with suppliers anticipating some tightening if more buyers enter the market. The weekly Davis Index for C-200 series alloy’s copper spread widened by 0.9¢/lb to 13.9¢/lb under the Comex copper spot contract, while the C-200 series zinc spread, remained at 6.5¢/lb under the LME zinc cash contract.


Comex copper and LME zinc prices remain high despite the slight correction. With more buyers looking to procure volumes, transaction prices have also remained high. The weekly Davis Index for 360-rod borings increased by 3.5¢/lb to $3.14/lb delivered US consumer. Brass radiators climbed by 7.4¢/lb to $2.587/lb delivered. Red brass solids rose by 7.5¢/lb to $3.281/lb delivered amid continuing shortage for this grade.


High freight costs and labor shortage remain a challenge that is holding some buyers back. Still, sellers are confident that their offers at tighter spreads will be accepted by buyers amid growing demand and tight supply of some brass grades. 

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