NEW YORK Discounts for
some grades of copper scrap narrowed March 13 as sources on
both sides of the market continued to express concern about
weak scrap inflows.
"I am starting to hear that some
scrapyards are running out of money," one scrap trader said.
"There are too many players fighting for the same material.
There needs to be a shake out."
The discount for brass
mills No. 1 copper scrap tightened to 6 to 8 cents below
Comex compared with a 7- to 9-cent discount a week earlier,
putting March 13 prices at about $3.45 to $3.47 per pound based
on a March 13 Comex copper price of $3.525 per pound for May
delivery. Meanwhile refiners copper scrap No. 2 narrowed
to a 33- to 35-cent discount from a 34- to 36-cent discount
previously, putting March 13 prices at around $3.18 to $3.20
"I dont know if this
tightness is a result of hoarding or whether the material is
truly unavailable," a second trader said. "Hopefully, as
discounts continue to narrow we will see some material enter
Discounts for brass ingot
makers No. 1 bare bright tightened to 7 to 10 cents,
putting prices at about $3.43 to $3.46 per pound March 13, down
from an 8- to 11-cent discount previously. Discounts for brass
ingot makers No. 1 slimmed to 18 to 20 cents, or $3.33 to $3.35
per pound, vs. a 19- to 21-cent discount previously; and No. 2
discounts fell to 33 to 37 cents, or $3.16 to $3.20 per pound,
from a prior discount of 34 to 38 cents.
Meanwhile, brass scrap prices
held steady March 13, as sources said supply concerns continued
to support prices amid slightly lower demand from end
"Were not doing a ton of
business right now. Were actively looking for material,
but is has been very tough to acquire. It doesnt matter
what the price is ... if we cant buy material, we
cant manufacture our product," one brass ingot maker told
"We have seen the flow of scrap
decrease dramatically over the past couple of weeks," a second
ingot maker said. "People have been saying that its all
about weather; I am not so convinced."
The May Comex copper contract
inched slightly higher March 14 to $3.5365 per pound.