The demand from Chinese importers, which have intensified their search for international copper feed in the light of Covid-19 disruptions, also pushed brass scrap prices up.
The fall in copper scrap discounts came amid a marginal uptick in the Comex copper price compared with last month, with retail and peddler scrap supply slowing to a trickle in the US partly due to the Covid-19 shutdowns and weak end-market demand.
“Apart from the supply issue, the Chinese are paying more, so I brought down my discount to be competitive,” one major copper scrap buyer source said.
A scrap seller agreed that the copper scrap discounts have tightened due to the combined effect of peddler scrap drying up and China’s export competition.
A copper scrap trader also acknowledged seeing “additional interest from China, which...