NEW YORK Most copper scrap discounts widened May 8 as
market participants said that the secondary market was reacting
to a recent recovery in Comex pricing.
The discount for brass ingot makers No. 1 bare bright
copper scrap increased to 5 to 7 cents per pound below Comex
from a 3- to 5-cent discount a week earlier, putting prices at
$3.30 to $3.32 per pound based on a July-delivery Comex copper
contract settlement price of $3.3705 per pound May 8; discounts
for No. 1 copper scrap widened to 14 to 16 cents below Comex,
or $3.21 to $3.23 per pound, from an 11- to 13-cent discount;
and those for No. 2 copper scrap increased to 25 to 28 cents
below Comex from 23 to 25 cents previously, putting prices at
$3.09 to $3.12 per pound.
It is difficult to tell if supply has improved, even as
the weather is getter better, one copper scrap trader
said. Were not seeing extra metal coming on to the
market. With a big rise on Comex youd think a lot more
metal would be available; that is not the case right now.
The discount for refiners No. 1 copper scrap increased to
10 to 12 cents per pound below Comex from 9 to 11 cents
previously, putting prices in a range of $3.25 to $3.27 per
pound; refiners No. 2 also widened to a 25- to 27-cent
discount, or $3.10 to 3.12 per pound, from 24 to 26 cents May
Discounts for brass mill No. 1 copper scrap increased to 3 to 5
cents below Comex from 1 to 3 cents previously, putting prices
in a range of $3.32 to 3.34 per pound.
A lot of sellers seem to be waiting to see if Comex will
head higher, one copper scrap buyer said. I think
this wait-and-see attitude is whats causing metal flows
to continue to be off.
July Comex, the most actively traded contract, lost ground May
9 to settle at $3.3405 per pound.
Meanwhile, prices for most grades of brass scrap increased May
8, with sources indicating that limited availability of
material, coupled with strong demand from the overseas market,
was causing upward price movement.
Red brass (No. 1 composition solids) rose to $2.53 to $2.58 per
pound from $2.50 to $2.53 previously; composition borings and
turnings increased to $2.50 to $2.55 per pound from $2.47 to
$2.50; and radiators strengthened to $2.12 to $2.15 per pound
from $2.10 to $2.13 per pound May 1.