NEW YORK Discounts for most copper scrap grades slipped July 10 as market participants said ongoing supply shortages and solid demand continued to bolster prices.
Refiners No. 1 copper scrap discounts dipped to 6 to 8 cents per pound below Comex from 7 to 9 cents a week earlier, putting prices at $3.01 to $3.03 per pound based on a September-delivery Comex copper settlement price of $3.091 per pound. The No. 2 copper scrap discount fell to 20 to 22 cents from 22 to 24 cents, putting prices at $2.87 to $2.89 per pound.
"Metal is tight and demand is pretty good. I think we are seeing discounts pull in. ... Nobody wants to operate beyond a 30-day windowthat seems to be as far out as they are comfortable looking, given all of this global uncertainty," one copper scrap trader said.
"Supply has definitely tightened over the last few weeks. We are able to sell at pretty decent spreads, especially on loads of bare bright; Its good competition for cathode," one copper scrap seller said.
Brass ingot makers No. 1 bare bright copper scrap discounts dipped to 1 to 3 cents per pound below Comex from 2 to 4 cents a week earlier, putting prices at $3.06 to $3.08 per pound. Discounts for No. 1 copper scrap decreased to 8 to 10 cents, putting prices at $2.99 to $3.01 per pound, compared with a 10- to 12-cent discount a week earlier.
Discounts for brass ingot makers No. 2 copper scrap eased to 20 to 22 cents per pound below Comex from 21 to 23 cents a week earlier, putting prices at $2.87 to $2.89 per pound. Light copper discounts fell to 28 to 30 cents below Comex from 30 to 32 cents, putting prices at $2.79 to $2.81 per pound.
Meanwhile, brass scrap tags held steady June 10, with sources indicating that tepid market activity had calmed price volatility.
"I have talked to a lot of people who said they were busy last week and then it just died off this week," one brass scrap told AMM. "Sellers are sitting on the metal because they are hoping for a market recovery and buyers are preparing for summer shutdowns."
Red brass (No. 1 composition solids) remained at $2.52 to $2.56 per pound, composition borings and turnings held firm at $2.48 to $2.53 per pound, radiators were steady at $2.13 to $2.17 per pound and yellow brass solids, which are largely an export item, were unchanged at $2.12 to $2.15 per pound.