US weekly brass scrap spreads widened on Friday after Comex copper prices rebounded to early-March highs.
The weekly Davis Index for C-200 series alloy’s copper spread widened by 2¢/lb to 13¢/lb under the Comex copper spot contract. The C-200 series zinc spread, however, remained unchanged at 7¢/lb, under the LME zinc cash contract.
Abundant supply and high freight costs continue challenging the brass market, though the latter is expected to soften soon amid improved weather conditions.
Suppliers, who have abundant material to offer, are unable to sell and are therefore contemplating further discounts, as buyers have preferred to wait for a couple of weeks before entering the market actively. Thus, spreads could widen further, according to market participants, before active trading resumes.
Prices for brass scrap grades increased on the strengthening Comex copper market this week. The weekly Davis Index for 360-rod borings rose by 4.5¢/lb to $2.90/lb delivered US consumer. Brass radiators jumped by 14.5¢/lb to $2.165/lb delivered during the week.
The Comex spot copper contract settled at $4.143/lb on Friday, up by 15.2¢/lb from a week ago after a brief correction last week. The spot LME zinc official contract inclined by $51/mt from Mar 5 to close at $2,797/mt on Friday.