Washington (Platts)--7Nov2012/829 pm EST/129 GMT

Discounts for copper scrap bought and sold in the US narrowed this week as COMEX copper futures eased on the back of a stronger US dollar and pre-positioning ahead of Tuesday's elections.

The Platts spread for No. 2 birch/cliff, the grade consumed mostly by Chinese mills, narrowed to March COMEX minus 36 cents, delivered FAS, with many sellers now pricing off the March contract to account for the shipping time.

Most sources put No. 2 spreads at March COMEX minus 32-38 cents, though overseas demand had remained "spotty," one Midwestern trader/processor said.

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If Chinese mills wanted to have scrap on the ground before the start of the week-long Lunar New Year celebrations in early February, then they normally begin buying in November and December.

But US supplies of No. 2 have remained tight for most of the year. "Supply is tight, but if you have it, you can sell it," the Midwest processor/trader said. "I can see someone paying in the low 30s for it."

The Platts discount for mixed loads of No. 1 burnt wire/pipe and tubing fell to December COMEX minus 20 cents, delivered US, from December COMEX minus 23 cents the previous week. Sales to US mills are normally priced off the active COMEX month due to the shorter duration to receive the metal.

Most sources put No. 1 spreads at December COMEX minus the mid-teens to 20 cents, delivered. But demand remains an issue, with some large domestic mills not taking deliveries until after the new year.

A trader/recycler in the upper Midwest agreed, but said sales could be made depending on the seller's relationship with the mill. The trader/recycler said he had made no No. 1 sales Wednesday, but felt the spread was closer to December COMEX minus 14 cents.

The Platts discount for high-grade bare bright, which has been more volatile than usual in recent weeks, narrowed to December COMEX minus 8 cents, delivered US.

Ranges for bare bright -- which can be used as a complement to, or substitute for -- exchange-traded copper cathode, varied considerably. The upper Midwest trader/processor said sales of bare bright wire still could be made at December COMEX minus 4-6 cents, the range for most of the summer. But discounts for bare bright busbar and clips were closer to December COMEX minus 8-9 cents, delivered.

Most sources put bare bright spreads in the December COMEX minus 8-10 cents range, pointing to the lack of market activity from bigger mills.

--Nick Jonson, nick_jonson@platts.com
--Edited by Jeff Barber, jeff_barber@platts.com

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