The Davis Index for US secondary zinc alloys increased on Tuesday after LME zinc surged on news of the Chinese market opening and the spread of COVID-19 slowing down.
The weekly Davis Index for Zamak #2 increased to $1.096/lb delivered US consumer on Tuesday from $1.062/lb delivered on March 31, while the index for Zamak #3 rose to $1.066/lb delivered from $1.037/lb last week. The indexes for Zamak # 5 and Zamak #7 also rose to $1.081/lb delivered US consumer and $1.066/lb delivered, respectively, on Tuesday.
The indices for zinc alloys also surged with ZA 8, ZA 12, and ZA 27 rising to $1.116/lb delivered, $1.136/lb delivered, and $1.146/lb delivered, respectively.
Cash offers on LME zinc, which are used to calculate the prices for zinc alloys, have risen over the past week because the Chinese market has reopened for business. Additionally, news of COVID-19’s spread slowing down in some of the hardest hit regions of the US lifted sentiment in the metals market.
The official LME zinc cash offers closed on Tuesday at $0.8763/lb, up from $0.8471/lb on March 31. The official three-month LME zinc contract also rose by $61/mt to close at $1,940/mt on Tuesday from $1,879/mt last week.