Several copper scrap discounts rose Aug. 28 as domestic demand
slackened ahead of the Labor Day holiday, consumers, traders
and sellers said.
"I still believe metal
is on the tighter side but theres not a great amount of
metal demand," a copper scrap broker told AMM, noting
that August has been quieter as Labor Day approaches.
scrap No. 1 discounts increased to 7 to 9 cents per pound from
6 to 8 cents last week. Based on the Aug. 28 Comex copper price
for September, the most actively traded contract,
refiners copper scrap No. 1 prices were around $3.22 to
$3.24 per pound.
Almost all ingot
makers scrap discounts changed, with copper scrap No. 1
rising to 10 to 13 cents per pound from 9 to 12 cents, putting
prices at $3.17 to $3.20 per pound, and copper scrap No. 2
discounts increasing to 27 to 29 cents per pound from 24 to 26
cents, putting prices at $3.01 to $3.03 per pound.
Discounts for brass
mill copper scrap bare bright remained unchanged at zero to 2
cents per pound, putting prices at $3.28 to $3.30 per pound,
indicating that low demand coupled with tight supply has
leveled out the market.
"I dont think
theres a huge demand," a copper scrap consumer said. "But
theres not a whole lot of scrapat least, not as
much as there used to be."
Sources said that
construction is a major indicator of the amount of scrap
available. According to the U.S. Census Bureau, housing starts
in July were at a seasonally adjusted annual rate of 896,000,
up 20.9 percent from July 2012.
"I just dont
think theyre out there building stuff like they say they
are," the copper scrap consumer said.