NEW YORK Bare bright supply is loosening up, but haggling over prices has led dealers to hang on to the metal, copper scrap consumers and sellers told AMM.
"I think (bare bright supply) is flowing, but it can be tight in getting those loads out," a copper scrap broker said. "The markets up a little and (consumers are) trying to widen the spread."
Brass ingot makers bare bright scrap discounts held at 4 to 6 cents per pound, putting prices at $3.21 to $3.23 per pound based on a Sept. 25 December-delivery Comex settlement price of $3.272 per pound. However, sources said discounts are "all over the place" as bare bright supply rises and sellers struggle with the potential widening of spreads.
"We do mountains of bare bright, 10 to 20 loads a month," one scrap seller said, adding that consumers have sought lower prices because of the rise in supply. "We hold onto it sometimes or try to find another consumer."
Sellers might sit on bare bright inventory ahead of the fourth quarter if they have made enough money and can roll the material into the next year, one copper trader said.
Bare bright discounts have also been affected by a recent spike in the Comex price, which surged to $3.347 per pound Sept. 19 from $3.2785 per pound a day earlier. Prices settled at $3.307 per pound Sept. 26.
Scrap demand has been slower overall, market sources said.
All copper scrap discounts held steady this week.