US zinc secondary alloys prices gained by 3-4¢/lb on Tuesday amid robust demand and high LME Zinc prices. This trend has seen zinc alloy prices rising by around 10-15¢/lb since March.
LME Zinc cash offers rose in tandem with other base metal prices to close at $1.34 on Tuesday, up from $1.33/lb in the previous week, while the official three-month LME Zinc contract increased by $26/mt from Apr 27 to $2,954.50/mt today. The three-month LME Zinc contract has risen by almost $200/mt since the beginning of April.
The weekly Davis Index for Zamak #2 increased by 3.4¢/lb to $1.55/lb delivered US consumer, with Zamak #3 and Zamak #7 rising by 3.3¢/lb to $1.52/lb delivered, respectively. Zamak #5 climbed by 4.2¢/lb to $1.545/lb delivered.
ZA 8 increased by 4.4¢/lb to $1.58/lb delivered and ZA 12 rose by 4¢/lb to $1.596/lb delivered, while ZA 27 climbed by 2.5¢/lb to $1.612/lb delivered.
Robust demand, especially in the construction and steel production sectors, has lifted zinc alloy prices over the past month. Both these industries have absorbed the impact of reduced orders from the automotive industry, which is currently reeling under the semiconductor shortage crisis.
Higher raw material cost for zinc alloys owing to increasing base metal prices has also put upward pressure on pricing, along with a weakening dollar and a bullish macroeconomic sentiment.