NEW YORK Brass scrap
supply shortages have kept prices relatively unchanged despite
a noticeable drop in terminal markets.
Prices for borings and turnings,
radiators and yellow brass solids are steady, with market
participants noting increased tightness on stronger demand.
"There are plenty of ready
buyers out there," one trader said. "There are just not a lot
of sellers willing to part with material right now."
Red brass scrap was the only
grade to weaken, falling to a range of $2.67 to $2.70 per pound
Feb. 20 from $2.69 to $2.72 a week earlier.
Meanwhile, discount spreads for
copper scrap stayed relatively steady, sources told
The range for brass ingot
makers No. 1 discounts slipped to 19 to 21 cents, down
from a 20- to 22-cent discount a week earlier, putting prices
at $3.40 to $3.42 per pound. Discounts for all other copper
scrap grades were unchanged.
Comex copper for March delivery
closed at $3.608 per pound Feb. 20, down 3.6 percent from
$3.7425 Feb. 13.
The recent downturn in copper
prices has seen sellers exit the market in the hope that Comex
prices will rebound, sources told AMM.
"I think were hitting a
wall," a second trader said. "I have gone to the busiest
scrapyards in town, and guys are just standing around. They
just dont have material coming in."
"The boom, supercycle, whatever
you want to call it, is over," a third trader said.
"Demolitions are down, and there are too many dealers fighting
over the same pieces of scrap."
"Things were already slow," a
fourth trader said. "Volumes are down, and now the market is
going down. However, supply is still tight, so Im not
writing the year off just yet."