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

US zinc secondary alloys prices climbed on Tuesday in tandem with an increase in LME Zinc prices. 


LME Zinc cash offers increased on Tuesday to $1.38 from $1.34/lb in the previous week, while the official three-month LME Zinc contract, which hit a record high of more than $3,000/mt on May 28 for the second time in one month increased by $82.50/mt from May 25 to close at $3,064.50/mt today. 


The weekly Davis Index for Zamak #2 increased by 2.3¢/lb to $1.605/lb delivered US consumer with both Zamak #3 and Zamak #7 climbing by 1.8¢/lb to $1.565/lb delivered, respectively. Zamak #5 rose by 1.7¢/lb to $1.58/lb delivered, recovering its loss from last week.


ZA 8 was the only grade to decline and inched down by 0.2¢/lb to $1.595/lb delivered while ZA 27 increased by the same amount to $1.665/lb delivered. The index for ZA 12 increased 1.2¢/lb to and $1.635/lb delivered US consumer.


Trade was quiet on Tuesday as buyers were slow in returning to the market after the Memorial Day weekend. Still., demand remains strong with suppliers believing that the present highs in zinc alloy prices are not deterring buyers from booking further orders. Even if they were to question the prices, producers would find it difficult to reduce them because of high production costs due to expensive raw materials like copper, aluminum, and magnesium, which are adding a larger premium to alloy prices. 

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