US zinc secondary alloys prices inched up on Tuesday as demand outpaced supply amid falling LME Zinc prices.
The official LME Zinc cash offers closed Tuesday at $1.2379/lb falling from $1.2558/lb last week, while the official three-month LME Zinc contract fell by $30.50/mt from last week, closing Tuesday at $2,757/mt from $2,787.50/mt on Dec 1.
Consumers are taking stock of their year-end inventory while trying to keep pace with improved demand in the market. Meanwhile, tight supply due to smelters building their inventories towards the year-end and the continued suspension of operation at the Gamsberg mine in South Africa continue to keep the supply in the primary zinc market tight, which in turn is impacting the availability of the material to make alloys.
The weekly Davis Indexes for all Zamak grades rose by 0.2¢/lb with Zamak #2 and Zamak #5 increasing to $1.47/lb delivered US consumer and $1.455/lb delivered, respectively. Both Zamak #3 and Zamak #7 moved up to $1.44/lb delivered on Tuesday.
The index for ZA 8 increased by 0.6¢/lb to $1.494/lb delivered US consumer while ZA12 moved up by 0.2¢/lb to $1.514/lb delivered. ZA 27 saw the highest rise of all grades, climbing by 0.7¢/lb to $1.534/lb delivered US consumer.
The index for ZA 8 increased by 0.2¢/lb to $1.49/lb delivered US consumer while ZA12 and ZA27 moved up by the same amount to $1.51/lb delivered US consumer and $1.53/lb delivered, respectively.
According to some market participants, prices continue to outpace demand, because of which consumers are holding back on their purchases until after the Christmas holidays when the market is expected to fall in line with the supply and demand dynamics of the physical market.