Domestic zinc scrap and ingot prices on Monday fell by 1-3pc in around 10 days prompted by a fall in LME zinc prices. The Davis Index for zinc galvanizer’s dross for Delhi settled at Rs196,090/mt ex-works producer, down by Rs3,557/mt from Aug 13 led by reduced offers amid a sharp fall in LME zinc levels.
Primary zinc prices also slipped in line with LME, which pressurized scrap prices. The Davis Index for secondary zinc ingots in Delhi settled at Rs200,500/mt ex-works Delhi consumer, down by Rs3,200/mt from Aug 13 levels. The official three-month LME zinc contract slipped by $75/mt to $2,950/mt on Friday from Aug 12.
Enquires have picked up in both Delhi and Mumbai but due to high scrap offers buyers lowered trade volumes. In terms of spreads, markets in Delhi strengthened on Monday compared to Aug 13, despite a drop in prices. While LME levels slipped by 2.48pc in the last 10 days, scrap prices in Delhi fell under 2pc as demand supported prices to an extent. Offers dropped a tad lower as demand for both dross and secondary zinc ingots remained firm.
In Mumbai, the Davis Index for zinc galvanizer’s dross on Monday settled at Rs202,500/mt ex-works producer, down by a relatively higher difference of Rs7,500/mt. Offers were pushed down by lower primary zinc prices. Also some sellers lowered asking prices to encourage sales. Dross consumers are procuring material on a need basis as their inventories are depleting at a slower rate than expected, hinting of a slowdown in end-user consumption. This might be a temporary lag, shared Mumbai-based traders, who remain optimistic of renewed demand.
Mumbai markets weakened in terms of spreads for both, secondary zinc ingot and dross. The Davis Index for secondary zinc ingot for Mumbai settled at Rs198,500/mt ex-works consumer, down by Rs7,950/mt from Aug 13, pressured by low demand for the grade. Markets weakened as prices dropped on low trades in Mumbai.
The Davis Index for imported new zinc diecast on Monday settled at $2,322/mt cfr India port, down by $55/mt from Aug 13 levels. Offers were reduced strictly on lower LME levels. LME zinc levels fell sharply on Aug 19, down by $62/mt from a day ago which resulted in a drop in bids for the grade. Offers for new zinc diecast, Monday heard at $2,300-2,345/mt cfr India port.
The Davis Index for Zamak #3 on Monday settled at Rs254,033/mt del India consumer, down by Rs3,557/mt from Aug 13 and the index for Zamak #5 settled at Rs256,867/mt del India consumer, down by Rs3,223/mt from Aug 13. Zamak prices are down amid a fall in primary zinc prices. Demand for the grade was meager on Monday as buyers stayed away to get a sense of price direction.
($1=Rs74.28)