US zinc scrap prices increased on Thursday on strong demand from end-consumers, especially for the galvanizer grades.
The official LME Zinc three-month price settled Thursday at $2,936/mt, down by $12/mt from Jul 15.
Demand for both galvanizer grades remains strong, especially from steelmakers. The weekly Davis Index for zinc galvanizers bottom dross increased by 3.5¢/lb to 97¢/lb delivered US consumer, while zinc galvanizers top dross increased by 3.3¢/lb to $1.01/lb delivered on Thursday.
New zinc diecast also inched up by 0.5¢/lb to 95.5¢/lb delivered as demand from end-consumers such as the air-conditioning market offset the continuing softness from the automotive industry. The Davis Index special high-grade premium was flat at 8.5¢/lb delivered.
Participants have witnessed some volatility creeping into the market over new fears related to the rise of COVID-19 cases in the US and the spread of the Delta variant of this virus. Still, demand has kept the market resistant to these fluctuations and a softening in prices. Moreover, the latest data from the World Bureau of Metal Statistics points to an ongoing deficit in the global zinc market, which could drive up primary zinc and scrap prices in the near- to medium-term.