The weekly spreads for US domestic copper scrap tightened on Tuesday as the market went quiet amid currency and Comex copper fluctuations.
Comex copper closed today at $4.25/lb up by 5¢/lb from Aug 17. Still, Comex copper remains at least 10-15¢/lb below late-July to early August levels, diminishing spot deals.
The Davis Index spread for #1 copper wire & tube narrowed by 0.4¢/lb to 21.2¢/lb under the August Comex contract, with the grade’s weekly transaction price increasing by 7¢/lb to $4.05/lb delivered.
Spreads for US bare bright copper scrap (barley) tightened by 0.3¢/lb to 14.4¢/lb under the August Comex contract on Tuesday. Bare bright’s transaction price increased by 6¢/lb to $4.11/lb delivered US consumer.
For #2 light copper, the spread narrowed by 2.5¢/lb to 54.5¢/lb under the August Comex contract while its transaction price climbed by 8¢/lb to $3.71/lb delivered US consumer.
Trade has turned sluggish as volumes are hard to come by as sellers prefer to hold on to their inventories until prices improve and buyers look to pick up volumes at bargain prices. Currency fluctuations are also causing volatility in the spreads and prices in the copper export market this week.
Still, participants remain optimistic about the market’s long-term fundamentals given the thrust on the infrastructure bill in the US that will increase demand for the red metal exponentially. Moreover, global demand for copper is increasing, as reported by the World Bureau of Metal Statistics (WBMS) on Aug 23.