US zinc alloy prices fell by more than 4¢, following consistent decreases in LME zinc over the past two weeks.
The Davis Index for Zamak #2 fell by 4.7¢ to $1.035/lb delivered US consumer, as did Zamak #3, which fell to $1.005/lb delivered on Tuesday from $1.052/lb last week. The indexes for Zamak #5 and Zamak #7 both fell by 4.7¢ to $1.020/lb delivered consumer and $1.0005/lb delivered, respectively.
The indexes for zinc alloys ZA #8, ZA# 27, and ZA# 12 also declined to $1.055/lb, $1.085/lb, and $1.075/lb, respectively, on Tuesday.
Zinc alloy prices follow the LME zinc official cash price, which slipped to $0.8264/lb on Tuesday from $0.8618/lb on March 17, marking a third consecutive week of declines.
Alloy demand is also waning because the domestic automotive sector temporarily shut down plants to protect employees from COVID-19. Last week, the three major automotive companies—Ford, Fiat-Chrysler, and General Motors—declared temporary suspensions at their Detroit facilities for at least two weeks. Their decisions could impact demand for zinc alloys, which are used extensively in vehicle manufacturing.
The official three-month LME zinc contract also continued declining. It closed at $1,836/mt on Tuesday, down by $77 from $1,913/mt at the close of trade on March 17.