US weekly brass scrap spreads trended sideways on Friday following a flat trend in Comex copper and a slight rise in LME zinc prices.
The Comex spot copper contract closed at $4.535/lb today, up by 0.5¢/lb from Jun 4 after it dropped by more than 13¢/lb on Jun 1. The spot LME zinc official cash contract increased by $21/mt to $3,001/mt on Friday compared to Jun 8.
Limited supply continues to challenge brass scrap trade in the US and has kept the spreads for C-200 alloys rangebound this week. The weekly Davis Index for C-200 series alloy’s copper spread widened by 0.2¢/lb to 11.5¢/lb under the Comex copper spot contract, while the C-200 series zinc spread, was flat at 5.7¢/lb under the LME zinc cash contract.
Any brass scrap that yards have is moving quickly as yards try to sell their inventories before buyers retreat completely from the market. Still, most mills are expected to halt their buying activities until July. With some large smelters expected to shut down for maintenance during summer, brass prices may potentially be impacted further next month.
Transaction prices, which fell last week due to the drops in Comex copper and LME zinc were also rangebound this week amid a lack of trading with the weekly Davis Index for 360-rod borings increasing by 3.5¢/lb to $3.125/lb delivered US consumer. Brass radiators were flat at $2.50/lb delivered, while red brass 85:15 increased by 1.5¢/lb to $3.57/lb delivered.