US zinc secondary alloys prices slipped again on Tuesday in a volatile market that has seen the LME Zinc prices change direction twice in as many days.
The official LME Zinc cash offers closed Tuesday at $1.2569/lb down from $1.2633/lb last week, but slightly elevated from Jan 11 when they closed at $1.2540/lb. The official three-month LME Zinc contract fell by $33/mt from last week, closing Tuesday at $2,778/mt from $2,811/mt on Jan 5.
The weekly Davis Index for Zamak #2 fell the least of all grades, slipping by 2¢/lb to $1.478/lb delivered US consumer. Zamak #5 fell by 2.6¢/lb to $1.462/lb delivered, while both Zamak #3 and Zamak #7 declined by 2.4¢/lb to $1.449/lb delivered on Tuesday.
The indexes for ZA grades saw steeper declines, with ZA 8 and ZA 27 falling by 3¢/lb to $1.498/lb delivered US consumer and $1.528/lb delivered, respectively. ZA 12 decreased by 2.7¢/lb to $1.518/lb delivered.
Demand for zinc alloys remains robust but producers are worried that rapid price changes could see buyers holding off on their purchases until there is more stability in the market. Despite the slide this week, some market participants believe there is still more room for correction in prices.
Moreover, rising demand, as well as the need to meet orders, could compel seasoned buyers to continue their purchases despite high prices and current volatility.