The weekly spreads for US domestic copper were mixed as demand remained weak and Comex copper dropped by more than 10¢/lb over the week.
The Comex copper spot market settled at $3.983/lb on Tuesday, down by 10.7¢/lb from Mar 23 in a volatile market that was spooked by the maritime traffic jam in the Suez Canal last week.
The Davis Index spread for US bare bright copper scrap (barley) widened by 0.2¢/lb to 16.9¢/lb under the March Comex contract on Tuesday, with the transaction price for this grade dropping by 16.9¢/lb to $3.983/lb delivered US consumer.
The spread for #1 copper wire & tube tightened by 1.8¢/lb to 25.7¢/lb under the March Comex contract, with its weekly transaction price dropping by 8.7¢/lb to $3.726/lb delivered.
The spread for #2 light copper widened by 0.7¢/lb to 49.7¢/lb under the March Comex contract while the transaction price for #2 light declined by 9.7¢/lb to $3.486/lb delivered US consumer.
Demand is expected to remain subdued going into Q2 2021 as participants try to gauge the impact of the soon-to-be announced federal infrastructure package on the copper market in the US. The ongoing container shortage and higher freight rates are likely to continue into April, affecting copper scrap pricing in the near term.