The weekly Davis Index for new zinc diecast remained unchanged at 61¢/lb delivered US consumer on Thursday, as the market waits to see how manufacturing and automotive plant restarts will affect supply and demand.
The index for zinc galvanizers bottom dross held at 73¢/lb delivered US consumer and was flat for zinc galvanizers top dross at 68¢/lb delivered. The index for special high-grade zinc premium also remained unchanged at 8.5¢/lb above the official LME zinc three-month contract.
A steady rise in LME zinc prices over the past couple of weeks had brought some optimism back into the zinc market, however Jerome Powell, Chair of the Federal Reserve, alluded to a prolonged recession, which once again pushed prices down. The official three-month LME zinc contract closed Wednesday at $1980.5/mt, declining by $22/mt from $2,002.5/mt on May 7.
Market participants are watching factory restarts, many of which began this week, to determine how much demand there is for zinc. With demand unlikely to rise before June, zinc prices are expected to move within a narrow range.