Market
April 2, 2024
Non-Ferrous Spreads
Written by Gabriella Vagnini
As the Midwest Premium steadily climbs back up to 19.35, marking an increase of 190 basis points since the start of March, and with LME val for 3 months at $2370 and cash-to-3-month spread at $42, MWUSTP has reached a $1.25/lbs.
UBCs are still commanding 70% from last week, which mimics the little change in aluminum scrap spreads for this week.
We’ve observed favorable copper spreads for bare bright at May less 10.5 cents and #1 copper at May less 18.5 cents. Even though May Comex is at $4.079, a retreat from prior weeks, it’s still staying above the $3.89 mark from mid-March. Giving market participants the 3 cents-4 cents they were looking to make. Although there are still hopefuls out there for reaching and staying above $4.25, speculators are thinking otherwise.
Despite the market speculation of a potential price retreat by the end of the month and into May, we remain unconvinced. Demand persists, while the supply shortage persists, indicating continued price hikes.
