NEW YORK Most copper scrap grades saw discounts slip May
15 as market participants said that downward movement on Comex
had caused spreads to tighten slightly.
The discount for brass ingot makers No. 1 bare bright
copper scrap decreased to 3 to 5 cents per pound below Comex
from a 5- to 7-cent discount a week earlier, putting prices at
$3.22 to $3.24 per pound based on a July-delivery Comex copper
contract settlement price of $3.265 per pound May 15. Discounts
for No. 1 copper scrap fell to 13 to 15 cents below Comex,
putting prices at $3.12 to $3.14 per pound, compared with a 14-
to 16-cent discount previously.
Comex wants to go lower; it has to go lower, one
copper scrap trader said. We might see Comex at $2.80 per
pound before we see $3.50 per pound. If it continues to weaken,
we will see discounts narrow even further.
However, the July Comex contract inched up 0.9 percent May 16
to settle at $3.2945 per pound.
Discounts for brass mill No. 1 copper scrap fell to 2 to 4
cents below Comex from 3 to 5 cents previously, putting prices
at $3.23 to $3.25 per pound.
Meanwhile, prices for most grades of brass scrap decreased May
15, with sources indicating that domestic demand had weakened
over the past week.
Red brass (No. 1 composition solids) fell to $2.51 to $2.55 per
pound from $2.53 to $2.58 previously, composition borings and
turnings to $2.48 to $2.53 per pound from $2.50 to $2.55, and
radiators to $2.10 to $2.13 per pound from $2.12 to $2.15 per
pound May 8.