The prices for US zinc scrap declined by slightly more than a penny on Thursday in a quiet market.
The LME Zinc market regained some of its losses from last week with the three-month official LME Zinc contract closing on Thursday at $2,569.50/mt up by $53.50/mt from $2,516/mt on Oct 29, as global and domestic supply and demand remained balanced.
The weekly Davis Index for new zinc diecast declined by 1.1¢/lb to 74.4¢/lb delivered US consumer amid adequate supply and demand.
Prices for both the dross grades inched down amid annual contract negotiations with steelmakers that began last week. The index for galvanizers bottom dross declined by 1.2¢/lb to 75.4¢/lb delivered US consumer, while galvanizers top dross fell by a penny, to 73¢/lb delivered on Thursday.
Market participants expect prices to remain volatile at least until the results of the US presidential race are out and final. Moreover, ongoing annual contract negotiations, seasonality, and global supply-demand factors such as slowing smelter activities and lower concentrate production in countries like China are likely to impact US zinc prices over the next two months.
The index for special high-grade zinc premium was flat at 8.5¢/lb under the three-month LME Zinc contract on Thursday despite expectations of this price to move upward in tandem with the LME Zinc market that climbed during the week. The demand for zinc is expected to grow moving into 2021, which could favor premiums pricing to trend higher.