Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Prices for US zinc scrap were unchanged Thursday on waning supply and demand.


The weekly Davis Index for zinc galvanizers bottom dross remained at 73¢/lb delivered US consumer and was flat for zinc galvanizers top dross at 68¢/lb delivered. The index for new zinc diecast held at 62¢/lb delivered, while SHG zinc premiums were flat on Thursday at 8.5¢/lb over the three-month LME zinc contract.


Market participants aren’t especially enthusiastic about supply or demand improving this month, as domestic scrap yards remain closed or operate on reduced hours to contain the spread of COVID-19. Consequently, collections have declined, while production, too, has fallen because many smelters have suspended operations—all of which have conspired to deplete scrap flows. 


Buyers are also worried about the lack of credit insurance, as companies offering the latter reduce coverage for customers with poor financial performance. Without credit insurance, suppliers—which would closely monitor their own cash flows at this time—must take on the extra risk or jeopardize the sale of material.


The official three month LME zinc contract closed Thursday at $1,868/mt, declining by $68/mt from $1,936/mt on April 16.


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