US copper scrap prices increased on Tuesday, reflecting the rise in the Comex market that closed above the $3/lb mark once again. Spreads, however, widened for most grades as supply outpaced demand.
The Comex spot market closed at $3.04/lb on Tuesday, up from $2.96/lb on Oct 6.
The spread for US bare bright copper scrap (barley) delivered US consumer was weaker by 2.2¢/lb at 15.2¢/lb under the October Comex contract on Tuesday, while the weekly Davis Index for bare bright increased by 5.1¢/lb to $2.891/lb delivered US consumer.
The spread for #1 copper (berry/candy) widened by 2.4¢/lb to 26.7¢/lb under the October Comex contract, with the weekly index for the grade climbed by 3.7¢/lb to $2.77/lb delivered on Tuesday.
The spread for #2 Light copper weakened by 0.4¢/lb to 44.2/lb under the October Comex contract. The index for #2 Light, on the other hand, increased by 6.6¢/lb to $2.60/lb.
Supply continues to outpace demand allowing consumers to push spreads wider. For sellers, cash concerns seem to be the main reason for their willingness to sell against such wide spreads, since they would rather have that cash sitting in the bank versus having more inventory in the current economic environment.