The weekly Davis Index for Zamak #3 Monday remained unchanged at Rs170,533/mt del India consumer and the index for Zamak #5 was flat at Rs174,033/mt del India consumer from the week prior as markets continued to remain shut amid COVID-19 lockdown.
Indian zinc scrap markets are expected to remain closed as a few states have extended the lockdown until April 30 as COVID-19 cases have increased in these regions. Many zinc smelters were waiting to restart business from April 14 as their inventories have piled up. The Davis index for secondary zinc ingots Monday remained unchanged at Rs159,700/mt ($2,093/mt) ex-works Mumbai consumer and Rs159,950/mt ex-works Delhi consumer, flat from the week prior.
In the dross market, galvanizers were restricted from resuming operations as they do not fall under essential services. Dross buyers, on the other hand, have stopped manufacturing zinc oxide as end-user factories remained shut. The weekly Davis index for galvanizer’s dross settled at Rs146,325/mt ($1,920/mt) ex-works Mumbai producer, while the index for Delhi settled at Rs150,783/mt ex-works Delhi producer flat from the week prior as no trades were reported.
Market participants expect manufacturing activities to resume slowly post the lockdown and return to normalcy by September. The Davis Index for new zinc diecast settled at $1,456/mt cfr India port flat on Monday from the week prior. It has become difficult for importers to unload goods at the ports due to lockdown and the unavailability of labour. Several scrap exporting countries are also under lockdown.
Despite the virus outbreak, primary zinc producers could raise their prices as LME zinc is on an upward trend. The three-month official LME zinc contract was up by $62/mt on Friday from March 24. The LME zinc contract settled at $1,898.5/mt on April 9 as against $1,876 up by $22/mt from the prior Friday.
Special high-grade zinc was priced at around Rs166,700/mt towards the beginning of the lockdown phase. An upward movement in primary metal prices drives up the prices of zinc alloy, Zamak. Also, most scrap grade could get a price lift if LME zinc continues its upward movement post lockdown.
The Davis Index for Zamak #3 Monday remained unchanged at Rs170,533/mt del India consumer and the index for Zamak #5 was flat at Rs174,033/mt del India consumer from the week prior.
Primary zinc manufacturers have shut production temporarily complying with the government’s lockdown orders. However, essential operations are running with limited workforce. Zamak manufacturers and die-casters have not resumed operations.