The No. 2 copper scrap discount for China has widened notably in February mainly on increased scrap availability after a rebound in the copper price, while the industry is still lobbying with the government to avoid a total scrap ban that could happen as soon as 2021.
Fastmarkets assessed the discount for birch and cliff scrap of 94-96% copper content on a cif China basis at 28-34 cents per lb this month, wider than 24-30 cents per lb a month ago. In February, multiple parcels of Southeast Asian scrap have been reported transacted at 88-89% of the London Metal Exchange price, while one bid came in as low as 87%. Whereas one parcel of Europe-origin scrap sold at a slightly more expensive level equivalent to over 90% of the LME price. The steeper spreads have been attributed to sellers'...