US zinc scrap prices decreased for most grades on Thursday in tandem with a drop in LME Zinc prices.
LME zinc prices fell this week with the three-month official LME zinc contract closing at $2,772/mt on Thursday, down by $42.50/mt from Mar 18.
The weekly Davis Index for zinc galvanizer grades declined by 2¢/lb on Thursday with zinc galvanizers bottom dross and zinc galvanizers top dross settling at 74.5¢/lb and 71.5¢/lb, respectively.
New zinc diecast prices increased on improving demand from the steel and automotive industries, with the index inching up by 0.3¢/lb to 79¢/lb on Thursday.
Demand in the zinc market is likely to outpace supply over the next few months as primary zinc production struggles to keep up with rising consumption, according to participants.
Still, the latest ILZSG data indicated that the zinc market remained in surplus through January. Global primary zinc inventory has also climbed for the seventh successive week. The Davis Index special high-grade zinc premium held unchanged at 8¢/lb delivered on muted trading for the primary grade.