US secondary zinc alloy prices remained unchanged across most grades on Tuesday amid supply worries.
The weekly Davis Index for Zamak #3 remained at $1.16/lb, while Zamak #2 dropped by a penny to $1.19/lb on Tuesday because rising zinc supply—especially in China, where demand and consumption have declined following the coronavirus outbreak—is causing uncertainties.
The Index for Zamak #7 remained at $1.16/lb and decreased by a penny for Zamak #5 to $1.17/lb. The Davis Index for zinc alloys also remained flat for ZA #12, ZA #27, and ZA #8 at $1.23/lb, $1.24/lb, and $1.21/lb, respectively, on Tuesday.
Producers expect the market to remain under pressure and are monitoring any developments pertaining to supply. Some market participants anticipate deceleration if domestic zinc producers reduce their output because of soft prices and low demand, which has so far been the trend in Q1.
LME zinc cash, on which secondary zinc alloy prices are calculated, decreased by $17 to close Tuesday at $2,128/mt, compared with $2,145/mt last week. The official three-month LME zinc contract closed Tuesday at $2,145/mt, down by $3/mt from $2,148/mt on Feb 11.