Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

US zinc scrap prices declined on Thursday amid rising freight costs and a rangebound LME zinc market. 


The weekly Davis Index for zinc galvanizers bottom dross and zinc galvanizers top dross declined by 0.5¢/lb to 98.5¢/lb delivered US consumer and $1.02/lb delivered, respectively, on Thursday.


New zinc diecast also inched down by 0.2¢/lb to 96¢/lb delivered despite a strong demand in the domestic market. Domestic zinc scrap prices remain higher than export despite rising inquiries from the latter with bids for zinc diecast heard at around 20pc of LME Zinc cash settlements, though no deals were reported at those levels.


In the primary market, the Davis Index special high-grade premium increased by a penny to 8.4¢/lb delivered. 


Domestic buyers are stepping back until prices settle further with a few spot deals heard in the market. Maintenance-related shutdowns at smelters and high trucking costs have also softened demand for the material this week. Transportation shortages are also affecting delivery and production schedules with some participants unable to fulfill their orders on time.


The official LME Zinc three-month price settled Thursday at $2,990/mt down $4/mt from Jul 29. 

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