The weekly spreads for US domestic copper scrap grades weakened, as prices climbed on a stronger Comex market.
The Comex spot market closed at $3/lb on Tuesday, up from $2.93/lb on August 25.
The spread for US bare bright copper scrap (barley) delivered US consumer was wider at 13.5¢/lb, under the September Comex contract on Tuesday, while the weekly Davis Index for the scrap grade increased by 7.6¢/lb to $2.875/lb delivered US consumer.
The spread for #1 copper (berry/candy) widened by 1.4¢/lb to 20.5¢/lb under the September Comex contract, with the weekly index for #1 copper moving up by 7.7¢/lb to settle at $2.805/lb delivered.
The spread for #2 Light copper weakened by 5.2¢/lb to 40.5¢/lb, under the September Comex contract while the weekly index for #2 Light increased by 3.5¢/lb to $2.605/lb delivered US consumer on Tuesday.
The robust Comex market has brought scrap to the US scrap yards’ gates, but it is hard to find demand beyond those yards. With the ability to hedge copper scrap, market volatility is less of a concern, making cash management the deciding factor when buying copper scrap, especially when demand for the material from mills ranges from sporadic to non-existent.