Zinc markets were quiet as India went into a complete lockdown until the end of March. Many market participants had anticipated the shutdown and filled up their inventories in the prior week. The Indian government has issued notices to keep businesses shut as a measure to curb the spread of COVID-19. The weekly Davis index for galvanizer’s dross settled at Rs146,325/mt ($1,920/mt) ex-works Mumbai producer, while the index settled at Rs150,783/mt ex-works Delhi producer down by Rs50/mt as no trades were reported.
Last week, producers of secondary zinc ingots with coal-based furnace had shut operations amid the rise in COVID-19 cases and lack of demand. The Davis Index for secondary zinc ingots settled at Rs159,700/mt ex-works Mumbai, flat from the week prior. The index for secondary zinc ingots settled at Rs159,950/mt ex-works Delhi consumer, also flat in a quiet market.
Imports of new zinc diecast will face huge delays since ports authorities plan to quarantine ships before docking and screen shipments. Bids for new zinc diecast were thin as global markets remain disrupted. However, market participants believe that when the lockdown ends both the demand and supply situation will be robust and offset any change in market prices. The Davis Index for new zinc diecast settled at $1,456/mt, down by $10/mt Monday from the week prior.
Many auto manufacturing units in India have suspended operations as per the government orders to close all non-essential activities.Across India, there are no transactions or inquiries.
The Davis Index for Zamak #3 fell by Rs5,192/mt and settled at Rs170,533/mt del India consumer and the index for Zamak #5 settled at Rs174,033/mt del India consumer, down by Rs4,442/mt. Prices for Zamak fell in line with the fall in the three-month official LME zinc contract that settled at $1,891/mt on Friday from $2,003, down by $112/mt in a week. Primary zinc manufacturers reduced prices following the decline in LME zinc prices. Special high-grade zinc prices were dropped by Rs 4,300/mt to Rs 165,700/mt on March 19. Zamak prices also fell as primary producers set their prices lower.
Die-casters have shut shop amid the lockdown and Zamak producers could soon follow suit as official tighten the restrictions.
($1 = Rs76.18)