US weekly brass scrap spreads tightened this week on improving demand and a drop in Comex copper prices during the week.
The weekly Davis Index for C-200 series alloy’s copper spread narrowed by 3¢/lb to 11¢/lb under the Comex copper spot contract. The C-200 series zinc spread tightened by 0.4¢/lb to 7¢/lb, under the LME zinc cash contract.
Inquiries have ticked up in the brass scrap market though high freight costs are still restricting inbound and outbound scrap flows. Suppliers are willing to ship material despite the higher costs to avoid the risk of higher stocks when prices fall. However, buyers are restocking cautiously given the volatility in the metals market this week.
Prices for some brass scrap grades softened after the correction in the Comex copper market this week. The weekly Davis Index for 360-rod borings declined by 5.5¢/lb to $2.855/lb delivered US consumer. Brass radiators dropped by 7¢/lb to $2.015/lb delivered during the week.
The Comex spot copper contract settled at $3.991/lb on Friday, down by 10.3¢/lb from a week ago after it corrected from its highest price point this year earlier this week. The spot LME zinc official contract declined by $74.50/mt from Feb 26 to close at $2,746.50/mt on Friday.