Spreads for US copper scrap widened slightly this week on reported business and a steady rise in futures prices. Domestic business conditions were still characterized as soft, and supplies relatively tight. The Platts spread for No. 2 birch/cliff scrap, the grade most favored by Chinese brokers and mills, widened to September COMEX minus 39 cents/lb, delivered FAS, from September COMEX minus 36 cents the previous week. Most sources cited spreads in the high 30s/low 40s. One broker in the upper Midwest put spreads on a delivered basis at September COMEX minus 35-36, but said brokers were buying at September COMEX minus 40-42 cents. But Chinese mills and brokers had begun filing refund claims for shipment portions they said did not meet specifications, he said. "The Chinese are claiming on stuff they never used to claim, and started marking down every load once stuff started reaching there," he said. But a trader on the East Coast said he had no problems with his shipments, and had sold at September COMEX minus 41 cents, delivered FAS. The Platts spread for No. 1 burnt wire widened to September COMEX minus 25 cents, delivered, from September COMEX minus 24 cents, delivered the previous week. Most sales were heard in the mid-20s range. Most US mills accept mixed loads of No. 1 burnt wire (berry) and No. 1 pipe and tubing (candy). A wholesaler in the Northeast put spreads for No. 1 berry at September COMEX minus 22 cents, and spreads for No. 1 candy at September COMEX minus 25 cents. The broker in the upper Midwest put export spreads for mixed loads of No. 1 at September COMEX minus 18 cents, delivered China. Spreads for high-grade bare bright scrap widened to September COMEX minus 10 cents, delivered, from September COMEX minus 8 cents the previous week. Sources generally agreed that bare bright spreads had tightened for a time, but widened this week. Wire mills often use bare bright as a substitute for cathode, or as a supplement to cathode. But sources also agreed that overall supplies of copper scrap remained tight. The East Coast trader said that up until about six weeks ago, he had been able to generate about 55,000 lb of bare bright, No. 1 candy/berry, No. 2 birch/cliff, yellow brass, and red brass over a week's time. Now he was lucky to generate 40,000 lb of the same five grades, he said. The Northeast wholesaler also agreed that supplies were tight, but was satisfied with the scrap flow through his plant. "In the office, it seems that we have many quiet days, and then we'll have a crazy day," he said.

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