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

The weekly spreads for US domestic copper scrap grades were mostly flat and prices moved down on tepid demand and reliable supply.  


The Comex spot market closed at $2.87/lb on Tuesday, down from $2.89/lb on August 4. After reaching its peak at $2.96/lb, the Comex market moved to a lower trading range as the world economy still struggles with COVID-19 related concerns.


The spread for US bare bright copper scrap (barley) delivered US consumer, was flat at 10.2¢/lb, under the July Comex contract on Tuesday, while the weekly Davis Index for bare bright decreased by 2¢/lb to $2.768/lb delivered US consumer.


The spread for #1 copper (berry/candy) was worse at 16.5¢/lb, lower by 0.1¢/lb under the July Comex contract, with the weekly index for the grade at $2.705/lb, worse by 2.1¢/lb.


The spread for #2 copper chops was worse at 28.6¢/lb, down by 0.1¢/lb under the July Comex contract. The index for the grade decreased by 6.7¢/lb to $2.538/lb.


Consumers had started to push spreads wider with better supply available to lower the cost of raw material. Now the Comex market is doing the work for them as it ends its bull run. Consumers feel comfortable with the spreads where they are for now and don’t anticipate them to tighten unless the copper market begins to trade in a range that is significantly lower than its current levels.

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