US zinc scrap prices increased by around a penny amid supply constraints and rising LME zinc prices.
LME zinc prices surged for the third successive week with the three-month official LME zinc contract closing Thursday at $2,906/mt up by $46.50/mt from Feb 18. LME zinc prices breached their highest point since the beginning of 2021 on Feb 12 and have risen by more than $200/mt since early February.
In the US scrap market, limited transport activity due to the cold weather conditions has restricted zinc scrap flows and deliveries. Participants expect market activity to improve next week once transportation is restored.
Zinc galvanizer grades inched up by 1¢/lb during the week with the Davis Index for zinc galvanizers bottom dross settling at 79.5¢/lb delivered US consumer and Zinc galvanizers top dross climbing to 76.5¢/lb delivered.
The weekly Davis Index for new zinc diecast inched up by 0.7¢/lb to 82¢/lb delivered US consumer. In primary markets, the Davis Index special high-grade zinc premium remained unchanged at 8.1¢/lb delivered.