US zinc secondary alloys prices gained by 3-8¢/lb on Tuesday amid buoyant demand and high LME Zinc prices.
LME Zinc cash offers rose on Tuesday to close at $1.36/lb up from $1.34/lb in the previous week, while the official three-month LME Zinc contract increased by $44/mt from May 4 to $2,999/mt today. The three-month LME Zinc contract has risen by more than $200/mt since the beginning of April.
The weekly Davis Index for Zamak #2 increased by 3¢/lb to $1.58/lb delivered US consumer with Zamak #3 and Zamak #7 rising by the same amount to $1.55/lb delivered, respectively. Zamak #5 climbed by 2.5¢/lb to $1.57/lb delivered.
ZA 8 and ZA 12 both increased by 3¢/lb to $1.61/lb delivered and $1.625/lb delivered, respectively, while ZA 27 climbed by 8.8¢/lb to $1.70/lb delivered on robust demand for the grade.
Strong demand continues to drive up prices for zinc alloys. Suppliers are working overtime to fulfill orders and are seeing a quick turnaround of production. Still, the market is expected to soften by the end of the second quarter as the summer months, which are historically a time for lower activity, set in.