Zinc dross and new zinc diecast prices inched upwards while secondary zinc and Zamak prices slid since last week. Despite a fall in official three-month LME contract, prices for some grades were bullish while the grades that are more directly in line with LME, dipped.
The official LME three-month zinc contract fell by $129/mt and settled at $2,720/mt on Friday from the previous week. Markets for all the grades strengthened in the week compared to prior Monday.
The weekly Davis Index for zinc galvanizer’s dross on Monday in Delhi settled at Rs191,333/mt ($2,607/mt) ex-works producer, up by Rs222/mt on strong demand. Galvanizing units have increased prices of dross, whose shortage could deepen if galvanizers do not receive enough orders. Demand for dross, however, remained firm. The weekly Index for zinc galvanizer’s dross in Mumbai settled at Rs190,250/mt ex-works producer, up by Rs83/mt.
High steel prices are affecting demand for zinc and galvanizing units are not receiving expected quantity of orders as consumption of steel is suffering though demand is there. Markets for zinc dross in Delhi and Mumbai strengthened as spreads contracted. The spread for Delhi index contracted by 4.57pc while the spread for Mumbai index contracted by 4.48pc.
The weekly Davis Index for new zinc diecast settled at $2,277/mt, up by $47/mt. Prices are up globally for the grade and despite competitive bidding from Indian importers, prices stayed bullish. Importers expect prices to climb this week, despite a fall in LME zinc. The market for new zinc diecast strengthened with spreads for the index narrowing by over 5pc.
The weekly Davis Index for secondary zinc ingot in Delhi fell by Rs584/mt to Rs194,083/mt ex-works consumer on Monday. Market in Delhi strengthened as spreads for the ingot widened by 4.25pc. Prices fell in Delhi on the back of high scrap prices and poor demand from brass manufacturers. The weekly Index for secondary zinc ingot in Mumbai settled at Rs190,000/mt ex-works consumer, down by Rs250/mt, as market strengthened with spreads for the index widening by 4.31pc.
The weekly Davis Index for Zamak #3 settled at Rs231,525/mt del India consumer, down by Rs2,808/mt on Monday. Prices dropped for zinc alloys in line with raw material prices, i.e. primary zinc. The weekly Index for Zamak #5 fell by Rs2,808/mt to Rs234,525/mt del India consumer. Markets for Zamak #3 and Zamak #5 strengthened as spreads for the indexes widened by a little over 4pc from the week prior.
Prices of primary zinc fell in line with LME’s dip to approximately Rs216,000-228,100/mt del India, down by 10,000/mt from the previous Monday. Demand for zinc is suffering because infrastructure sector is waiting for a boost and auto sector is struggling with paused production amid shortages of semiconductor chips. Consequently, demand for most zinc grades has started to slow down.
($1 = Rs73.3)