US zinc secondary alloys prices increased on Tuesday following two weeks of declines.
LME Zinc cash offers increased to $1.32/lb from $1.29/lb on Jun 22, while the official three-month LME Zinc contract, climbed by $91/mt to close at $2,946/mt today. Increasing costs of raw materials like copper and aluminum have also pushed zinc alloys prices upwards.
The weekly Davis Index for Zamak #2 increased by 5.7¢/lb to $1.572/lb delivered US consumer with both Zamak #3 and Zamak #7 rising by the same amount to $1.532/lb delivered. Zamak #5 climbed by 5.8¢/lb to $1.553/lb delivered.
ZA 8 moved up by 5.8¢/lb to $1.583/lb delivered while ZA 27 increased by 5.7¢/lb to $1.682/lb delivered. The index for ZA 12, moved up by 5.8¢/lb to $1.613/lb delivered US consumer.
Robust demand from the steel industry has offset any weakness arising from a subdued automotive sector that is still reeling under the semiconductor chip shortage. Spot buys remain strong as consumers, aware of steep costs related to manufacturing and freight, are ready to pay higher prices. However, long-term buyers have chosen to remain on the sidelines, waiting for the market and raw material prices to settle down before moving in.