US zinc scrap prices inched up on Thursday in tandem with LME Zinc prices that touched the $3,000/mt mark again this week.
The three-month official LME zinc contract rose today to close at $3,001/mt up by $4.50/mt from Jun 3. Still, the prices remain below the record high of $3,080/mt on Jun 1.
Zinc galvanizers dross grades that had fallen last week by 1-2¢/lb made up those gains this week after LME Zinc inched up and demand remained strong. The weekly Davis Index for zinc galvanizers bottom dross and top dross inclined by 2.9¢/lb and 3.4¢/lb, respectively, to 89.2¢/lb delivered US consumer.
New zinc diecast remained unchanged at 89.5¢/lb delivered US consumer for the second successive week amid tight supply, with offers firming up to as much as 91¢/lb.
In the primary market, the Davis Index special high-grade (SHG) zinc premium was also unchanged at 8.5¢/lb delivered. SHG zinc remains in tight supply globally.
The softness in the automotive market has been offset by the need for zinc scrap in the construction and steel industries. Moreover, high LME Zinc prices have enabled zinc scrap prices to remain high through most of May. Still, some suppliers are witnessing some wariness creeping in among buyers as they try to gauge the right time to make their purchases due to the swings in the LME.