NEW YORK Discounts for some copper scrap grades slipped June 19 as market participants said that downward movement on Comex had caused spreads to tighten slightly.
Discounts for brass mill No. 1 copper scrap fell to 1 to 3 cents below Comex from 2 to 4 cents previously, putting prices at $3.11 to $3.13 per pound based on a July-delivery Comex copper contract settlement price of $3.141 per pound June 19.
The discount on refiners No. 1 copper scrap dipped to 9 to 11 cents below Comex from a 10 to 12 cent discount a week earlier, putting prices at $3.03 to $3.05 per pound.
"I dont understand why Comex is trending down; its out of the physical realm," one copper scrap trader told AMM. "The availability of good brass scrap and copper scrap is simply not there. You would think it would have some bearing on the situation, but that is not the case."
Meanwhile, prices for some grades of brass scrap decreased June 19, with sources indicating that international demand had weakened over the past week.
"Demand is way down right now. All my Indian buyers are saying money is tight," one scrap seller said. "India doesnt want to make a commitment, Korea has exited the market and China wants to steal the metalits a very challenging market right now."
Red brass (No. 1 composition solids) fell to $2.53 to $2.57 per pound from $2.56 to $2.60 previously, composition borings and turnings moved to $2.48 to $2.53 per pound from $2.51 to $2.56 and yellow brass solids declined on the low end to $2.10 to $2.13 per pound from $2.11 to $2.13 June 12.
Radiators held steady at $2.13 to $2.17 per pound, as sellers indicated that an ongoing supply shortage was keeping prices at above-market levels.
All other secondary grades were unchanged.