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

The Davis Index for brass scrap trended flat to down for most grades as the Comex market reverted to its volatile pattern seen before July 10, albeit in a narrow range of roughly 10¢/lb.


The spreads have widened over the past two weeks but not as much as market participants expected. Demand has picked up globally especially for brass sheets because of a rise in ammunition sales. These trends have helped keep the spreads relatively tight against a rising Comex market and a tense scrap environment.


The weekly Davis Index for 360-rod borings increased by 0.1¢/lb to $1.924/lb delivered US consumers and moved lower by 0.9¢/lb for brass radiators to $1.67/lb delivered. The index for red brass (85:15) solids was flat at $2.53/lb delivered US consumers.


The weekly Davis Index for the C-200 series alloy copper spread was broader by 0.3¢/lb at 6.9¢/lb under the Comex spot contract, while the C-200 series zinc spread was wider at 4.2¢/lb under the LME zinc spot contract, weaker by 0.5¢/lb.


The Comex cash copper contract was unchanged at $2.88/lb on Friday from it close on July 17, while the spot LME zinc official contract increased by $5.5/mt on Friday to $2,193.50/mt from $2,188/mt on July 17.


The current Comex pricing has attracted more scrap into the scrap stream, allowing spreads to widen. However, consumers seem to be more concerned with shutting off flows too quickly, which could impact their ability to procure scrap when the next increase in demand occurs.

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