The weekly US export copper scrap spreads widened on most grades while prices declined as the market continues to struggle with excess supply and tepid demand.

 

Prices were also affected by the decline in the Comex market, where the next active contract closed on Wednesday at $3.03/lb, flat from a week ago.

 

The weekly Davis Index for #1 copper wire and tube was lower by 3¢/lb at $2.74/lb fas US port while #2 copper stepped down by 2.1¢/lb to $2.606/lb fas on Wednesday. Bare bright (barley) increased by 0.1¢/lb to $2.851/lb fas US port.

 

The Davis Index spread for #1 copper wire, and tube (berry/candy) was wider by 1.4¢/lb at 27.8¢/lb fas US port under the next active Comex contract. The spread for #2 copper (birch/cliff) was weaker by 2.4¢/lb at 42.7¢/lb fas US port, under the next active month on Comex, while the spread for bare bright (barley) widened by 0.5¢/lb to 18.2¢/lb fas under the next active contract. 

 

The US market was slow to react to the new export quotas released from China. Sources believe China will step back into the market next week in a meaningful way as the copper scrap stocks in SE Asia and Sri Lanka have dwindled. Thus, leaving the country responsible for 50pc of the world’s copper scrap purchases looking for copper scrap material.

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