The weekly spreads for US domestic copper scrap delivered US consumers tightened for some grades and widened for others amid a rising Comex market on Tuesday.
The Comex spot market closed at $3.30/lb on Tuesday, up from $3.197/lb on Nov 17.
The spread for US bare bright copper scrap (barley) delivered US consumer was flat at 16.3¢/lb, under the November Comex contract on Tuesday, while the weekly Davis Index for bare bright increased by 10.3¢/lb to $3.137/lb delivered US consumer.
The spread for #1 copper (berry/candy) was tighter by 0.05 ¢/lb at 26.3¢/lb, under the November Comex contract, with the weekly index for the grade moving up by 10.7¢/lb to $3.037/lb delivered.
The spread for #2 Light copper widened by 0.8¢/lb to 41.5¢/lb, under the November Comex contract while the index for the grade increased by 0.95¢/lb to $2.885/lb delivered US consumer on Wednesday.
As China resumes buying copper scrap, market participants are conflicted on the movement of the scrap grades and their spreads, especially with the Comex market on the rise. China’s impact on the copper scrap market is still unknown and many buyers are preferring to wait and see its effect on pricing and spreads before starting a buying spree.