US weekly export copper scrap spreads rangebound on Wednesday following mixed demand.
Demand is improving in Asia, especially for #1 copper wire & tube in India, though low bids for #2 copper in the country seem to have brought many deals to an impasse.
The next active Comex copper contract decreased by 4.4¢/lb to $4.2665/lb today from Jul 7. Strong order books and higher cathode premiums are likely to put some upward pressure on copper prices in the near term.
The Davis Index weekly spread for bare bright (barley) was flat at 18.5¢/lb under the next active Comex copper contract and #1 copper wire & tube (Berry Candy) was unchanged at 25.6¢/lb under the next active Comex.
Transaction prices for copper scrap grades inched down on Wednesday with bare bright (barley) falling by 4.3¢/lb to $4.082/lb fas US port and #1 copper wire & tube also decreased by 4.3¢/lb to $4.011/lb fas.
The Davis Index weekly spread for export #2 copper (Birch Cliff) was also unchanged at 54.5¢/lb under the next active Comex copper contract. The grade’s outright price decreased by 4.3¢/lb to $3.722/lb fas US port.
Some participants are seeing heightened interest in #1 copper chops into Asia and some believe the tightening of spreads is mainly due to current LME price levels and not because of increasing demand. Participants are thus still trying to gauge the market movement.