US secondary zinc alloy prices trended down for most grades, as the market sought direction on how supply and demand for the material will pan out once domestic auto and steel manufacturers resume operations.
The weekly Davis Index for Zamak #2 increased to $1.091/lb delivered US consumer on Tuesday from $1.085/lb on April 14, while the index for Zamak #3, Zamak #5, and Zamak #7 fell by almost half a penny to $1.051/lb delivered, $1.066/lb delivered, and $1.051/lb delivered, respectively.
The weekly index for zinc alloys ZA 8 fell to $1.096/lb delivered US consumer on Tuesday from $1.105/lb delivered on April 14. The weekly index for both ZA 12 and ZA 27 rose by 2.1¢/lb to $1.146/lb delivered and $1.156/lb delivered, respectively.
Market participants are looking to the end of April, when automotive manufacturing resumes, to get a better idea of how much demand there will be. The market has remained flat with downward pressure over the past few weeks, as smelters and alloy producers, adhering to state-wide stay-at-home orders, either suspended operations or worked at reduced capacities to balance supply with weaker demand from consumers, like carmakers and steel companies.
The three-month official LME zinc contract closed Tuesday at $1,887/mt, declining by $33/mt from $1,920/mt on April 14. The official LME zinc cash offers closed at $0.8509/lb on Tuesday, down by around 1.4¢/lb from $0.8645/lb on April 14.