NEW YORK Discounts for most copper scrap grades fell Dec. 11 as market players said that buyers and sellers were reacting to recent recoveries on terminal markets.
Several traders noted that tighter discounts didnt necessarily reflect a perceived supply shortage for secondary material.
"I want to reiterate that we are not seeing a shortage of bare bright copper," one copper scrap trader told AMM. "Frankly, given the weather, metal flow is decent. Beyond year-end issues like holiday shutdowns, physical inventory shutdowns, etc., I do think that demand is stable as well.
Pricing has been fairly consistent over the past week, with some items "pulling in a penny or so," he added.
A second trader noted that recent bad weather across much of the country has caused some sellers to hold material. "Its out there, but some people cant get it to the mills right now."
Meanwhile, some brass scrap prices increased by about 1 to 2 cents per pound as sellers said the moves were directly tied to upticks on Comex.
The March-delivery Comex copper contract, the most actively traded, settled at $3.295 per pound Dec. 11, up 1.4 percent from $3.249 per pound a week earlier.