US export copper scrap spreads widened on all grades while pricing climbed after a significant increase in the Comex market. The market has struggled with excess supply and tepid demand but hopes of China’s return to the marketplace have failed to elicit a surge in inquiries yet.
The next active Comex contract closed on Wednesday at $3.14/lb, up from $3.05/lb, a week ago.
The weekly Davis Index for #1 copper wire and tube increased by 5.7¢/lb to $2.82/lb fas US port. Simultaneously, the index for #2 copper surged by 8.9¢/lb to $2.70/lb fas on Wednesday. The bare bright (barley) index increased by 7.8¢/lb to $2.94/lb fas US port.
The Davis Index spread for #1 copper wire, and tube (berry/candy) widened by 3¢/lb to 32.5¢/lb fas US ports under the next active Comex contract, while #2 copper (birch/cliff) spreads weakened by a penny to 44.5¢/lb fas US port, under the next active month on Comex. The spread for bare bright (barley) widened by 1.2¢/lb to 20¢/lb fas under the next active Comex contract.
China’s reclassification of copper scrap set for July 2020 has yet to be confirmed and as a result, this week’s announcement canceling quotas for certain copper grades imported into China has not made much of an impact on the market.