The weekly spreads for US domestic copper scrap grades narrowed for most grades, while prices moved south against a Comex market that hit its high point for the year at $3.12/lb on Sep 18, but has reversed its trend since then.

 

The Comex spot market closed at $2.96/lb on Tuesday, down from $2.99/lb on Sep 29.

 

The spread for US bare bright copper scrap (barley) tightened by 0.5¢/lb to 13¢/lb under the September Comex contract on Tuesday, while the weekly Davis Index for bare bright decreased by 1.5¢/lb to $2.84/lb delivered US consumer.

 

The spread for #1 copper (berry/candy) strengthened by 1.8¢/lb to 18.2¢/lb under the September Comex contract, with the weekly index for the grade falling by 3.7¢/lb to $2.733/lb delivered.

 

The spread for #2 light copper widened by 2.3¢/lb to 43.8/lb under the September Comex contract with the index decreasing by 4¢/lb to $2.535/lb.

 

Supply and demand in the copper scrap market are balanced for now. Spreads tend to work independently in these moments as volumes and trades are much lower than traditional markets. 

 

Market participants all point to the US Presidential Election set for early November as the barometer for the business environment moving forward. A push back from the losing side in these elections is also of concern. No matter who wins, it allows for choices and direction. Postponing the results will only leave those questions in limbo even longer for the businesses and the country.

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