NEW YORK Copper
scrap discounts are approaching range highs as Comex price logs
gains, likely due to the Federal Reserves decision to
maintain its stimulus program, market participants said.
"I dont think
scrap is getting cheaper, its just that when the price
goes up theres more upward pressure on the (discount),"
one copper scrap broker told AMM. "Its a
response to the (Federal Reserve) not doing anything. We
anticipated they would be buying less, but since theyre
not doing anything its positive for the market."
The Comex copper
contract for December, the most actively traded, rose to $3.347
per pound Sept. 19 from $3.2785 per pound a day earlier.
Most copper scrap
discounts remained within the previous ranges but at the higher
end, while brass ingot makers scrap No. 1 discounts rose
to 12 to 14 cents from 10 to 13 cents previously, putting the
price at $3.21 to $3.23 per pound.
Prices for red brass
(No. 1 composition solids) rose to $2.48 to $2.52 per pound
from $2.45 to $2.49 last week, traders and sellers said. Red
brass borings and turnings increased to $2.45 to $2.48 per
pound from $2.42 to $2.45 previously.
consumers dont need red brass scrap, but those with
contracts for export products might be willing to pay up to
$2.57 per pound, market sources said.
While the Federal
Reserves decision to maintain the stimulus is a positive
sign for the market, participants said the sluggish economic
recovery is still hurting their business.