The Davis Index for US zinc secondary alloys increased by more than one-and-a-half pennies across all grades on Tuesday amid rising demand for the material.
The weekly Davis Index for Zamak #2 rose by 2¢/lb to $1.143/lb delivered US consumer as more buyers looked for the grade. The index for Zamak #3, Zamak #5, and Zamak #7 all increased by 1.8¢/lb to $1.113/lb delivered US consumer, $1.128/lb delivered, and $1.113/lb delivered, respectively.
The indices for zinc alloys all ticked up by 1.8¢/lb on Tuesday. The Davis Index for ZA 12 increased to $1.183/lb delivered and increased for ZA 27 to $1.203/lb delivered. The index for ZA 8 moved up to $1.163/lb delivered US consumer on Tuesday.
The official LME zinc cash offers, which are used to calculate zinc alloy prices, closed Tuesday at $0.9308/lb, increasing from $0.9104/lb on June 16. The official three-month LME zinc contract also closed Tuesday at $2,057.50/mt, up from $2,018.50/mt on June 16. Market participants expect zinc prices to move higher on the LME in the short-term, albeit slower than other base metals, such as copper.
Zinc alloy producers have seen demand increase as more manufacturing facilities restart. However, some suppliers anticipate that returning to pre-pandemic demand levels will take a long time, especially in the wake of rising COVID-19 cases across the country.