Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

US zinc alloy prices ticked up across most grades on Tuesday amid increasing interest from hedge funds and commodity traders and increasing volumes.


The weekly Davis Index for both Zamak #3 and Zamak #7 increased to $1.109/lb delivered US consumer from $1.108/lb delivered. The index for Zamak #2 and Zamak #5 also rose by 0.1¢/lb to $1.139/lb delivered and $1.124/lb delivered, respectively.


The indices for zinc alloys also saw a slight uptick for ZA 8 and ZA 27 by 0.1¢/lb to $1.159/lb delivered and $1.189/lb delivered, respectively. However, the index for ZA 12 moved down one-tenth of a penny to $1.177/lb delivered US consumer on Tuesday.


The official LME zinc cash offers closed Tuesday at $0.9081/lb down from $0.9188/lb on June 2. The official LME zinc three-month contract also closed on Tuesday at $2,012/mt down by $17.5/mt from $2029.5/mt, on June 2.


The interest from automotive producers in zinc alloys, ZA 8 and ZA 27 could increase after a study by Cranfield University’s Sustainable Manufacturing Systems Centre revealed that automotive parts made of zinc alloys could enhance their longevity. 


In the short-term though, producers worry about the supply gaps that are keeping volumes light. However, market participants remain optimistic about business picking up by Q3 2020. 

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