The prices for US zinc scrap moved slightly up or down, depending on grade, after the LME Zinc market slowed down during the week and demand moderated.
The LME Zinc market, which had surged before the Thanksgiving holidays to highs not seen since March 2018, gave back some of those gains this week. The three-month official LME Zinc contract closed on Thursday at $2,768/mt down by $3/mt from $2,771/mt on Nov 26.
According to market participants, some suppliers who were waiting for the prices to increase to desired levels are now looking to sell their inventory in the market. However, steady demand is likely to bring prices down over the coming weeks.
The weekly Davis Index for new zinc diecast fell by 1.5¢/lb to 75.4¢/lb delivered US consumer amid an adequate supply of the material.
The prices for both the dross grades ticked up slightly amid continued demand for the material from galvanizers looking to fulfill their orders from steelmakers. The index for galvanizers bottom dross rose by 0.6¢/lb to 78.3¢/lb delivered US consumer, while galvanizers top dross inched up by 0.1¢/lb to 78¢/lb delivered.
Special high-grade zinc premium began to trend down as supply increased and the LME Zinc market declined. The index for SHG zinc premium declined by 0.6¢/lb to 7.9¢/lb under the three-month LME Zinc contract on Thursday. Market participants expect the premium to touch 7¢/lb under the LME Zinc contract by January next year as supply increases, especially in the secondary zinc market.