The weekly Davis Index for new zinc diecast increased by a penny to 75.8¢/lb delivered US consumer on Thursday amid increasing demand for zinc scrap.
The index for zinc galvanizers top dross and zinc galvanizers bottom dross also moved up by three-tenths of a penny to 69.8¢/lb delivered US consumer and 72.8¢/lb delivered, respectively. The index for special high-grade zinc premium remained unchanged at 8.5¢/lb delivered, under the three-month LME contract.
Volumes remain soft, although some market participants are seeing demand pick up for the metal. The slow but steady rise in demand has scrap dealers optimistic about flows normalizing by the end of Q3 2020, on the back of increased production from the automotive sector.
LME zinc rose for the fifth straight week despite rising inventories with the three-month official LME zinc contract closing Thursday at $2,014.5/mt, up by $14/mt from $2,000.5/mt on June 4.