Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Zinc prices fell across most grades on Friday from Monday as offers were lowered in line with a dip in LME. The official LME three-month zinc contract fell by $26/mt and settled at $2,772/mt on Thursday from the Friday’s levels. Markets in India will be closed on Monday on account of festival of Holi and market participants described this week as highly volatile with no price direction.


Zinc galvanizer’s dross

The weekly Davis Index for zinc galvanizer’s dross on Friday in Delhi settled at Rs190,333/mt ($2,628/mt) ex-works producer, down by Rs417/mt from the Monday on lowered offers. Galvanizing units reduced offers as low demand from oxide manufacturers and uncertainly of price direction has led traders to be more cautious which has disrupted normal level of trades off late. Some market participants said that demand for dross was marginally weaker as several consumers are waiting for markets to become more stable. Markets for the grade in Delhi strengthened in terms of spreads which narrowed by 0.55pc from Monday.


The weekly Davis Index for zinc galvanizer’s dross in Mumbai settled at Rs186,667/mt ex-works producer, slipping by Rs1,733/mt from Monday. Offers for dross in Mumbai were between Rs185-000-187,000/mt which brought the weekly index down from Monday. The market for the grade in Mumbai weakened as spreads widened marginally by 0.12pc from Monday’s spreads.


Galvanizers in Mumbai and Delhi said that steel galvanizing orders are stable but price volatility of primary zinc is making it difficult for galvanizers to procure material. For a small scale galvanizer, daily 1-2mt of primary zinc is required, while now demand has slipped on price uncertainly. 


Secondary Zinc Ingot

The Davis Index for secondary zinc ingot in Delhi fell by Rs3,583/mt to Rs197,750/mt ex-works consumer on Friday from Monday. Brass manufacturers bid around Rs195,000-196,000/mt while some deals were concluded at RS197,000/mt ex-works consumer Delhi. Market for secondary zinc ingot in Delhi weakened as spreads for the price index narrowed by 0.99pc from Monday while the index fell by 1.78pc.


The weekly Davis Index for secondary zinc ingot in Mumbai settled at Rs193,850/mt ex-works consumer, down by Rs2,950/mt, Friday, from the beginning of the week. The markets for the grade in Mumbai weakened with the spreads for the price index narrowing by 0.69pc from Monday.


Prices of most zinc grades are under pressure with demand slipping in some regions in India. With the automobile sector hurt amid shortage of semiconductors, clearly demand for metals is also impacted as auto sector is a massive consumer of metals. Zinc is used for electroplating, which is consumed by auto sector. Zinc is also used in tyre manufacturing. Zinc alloys used for diecasting is also affected.


Zinc Alloys

The weekly Davis Index for Zamak #3 settled at Rs239,754/mt del India consumer, up by Rs2,254/mt on Friday from Monday. Prices climbed up for zinc alloys in line with raw material prices, i.e primary zinc. The Davis Index for Zamak #5 rose by Rs2,254/mt to Rs242,754/mt del India consumer from the Monday. Markets for Zamak #3 and Zamak #5 strengthened as spreads for the indexes widened by over 2pc compared to Monday’s spreads.


Scrap prices may rise as primary zinc prices were revised upwards from previously announced prices. SHG primary zinc ingot was around Rs227,000-237,000/mt on Friday, up by almost Rs3,000-4,000/mt from Monday’s levels.


Market sentiments may have weakened with the sudden rise in number of COVID-19 cases and the looming fear of lockdown in Maharashtra. Price volatility may continue to exist.



The weekly Davis Index for new zinc diecast settled at $2,594/mt cfr India port, marginally up by $2/mt from Monday. Offers heard were flat throughout the week at around $2,590-2,600/mt. The market for new zinc diecast strengthened with spreads for the price index narrowing by over 0.94pc from Monday while the index fell rose marginally 0.08pc.


($1 = Rs 72.4)

Leave a Reply

Your email address will not be published.