NEW YORK Most copper scrap grades saw discounts increase May 22 as a recent strengthening on the Comex, coupled with subdued domestic demand, caused spreads to widen, market participants say.
The discount for brass ingot makers No. 1 bare bright copper scrap moved to 4 to 6 cents per pound below Comex from a 3- to 5-cent discount a week earlier, putting prices at $3.32 to $3.34 per pound based on a July-delivery Comex copper contract settlement price May 22 of $3.3805 per pound.
Discounts for No. 2 copper scrap increased to 26 to 29 cents per pound below Comex from 25 to 28 cents previously, putting prices at $3.09 to $3.12 per pound. The discount for light copper increased to 35 to 37 cents below Comex from 34 to 36 cents, putting prices at $3.01 to $3.03 per pound.
"Domestic demand is decent but certainly not amazing," one copper scrap trader said. "Most yards I speak to say they are busy but not handling a whole lot of volume; there is still a shortage of material."
Discounts for brass mill No. 1 copper scrap increased to 3 to 5 cents below Comex from 2 to 4 cents previously, putting prices at $3.33 to $3.35 per pound.
Meanwhile, prices for some grades of brass scrap increased May 22 as sources said demand from overseas had increased over the past week. Prices for red brass (No. 1 composition solids) strengthened to $2.53 to $2.57 per pound from $2.51 to $2.55 previously, while composition borings and turnings increased to $2.50 to $2.55 per pound from $2.48 to $2.53.