The weekly Davis Index for US scrap zinc rose by a penny on Monday amid uncertainty over the coronavirus’s impact on trade with China and considerable decline in the three-month LME zinc contract.
The Davis Index for scrap bottom dross increased by1¢/lb to 76¢/lb, while top dross rose the same amount to reach 73¢/lb delivered consumer. The Index for Special High-Grade premiums remained 8-9¢/lb, while new diecast traded at 74¢/lb on Monday.
The three-month LME zinc contract dropped by $161/mt on Monday to $2,279/mt, from $2,440/mt a week earlier.
Market participants are largely unsure whether prices will rise or fall, but suspect a downward pressure because of supply concerns and the coronavirus’s effect on the Chinese market. Additionally, the Lunar New Year’s extension could result in minimal trade activity until at least the first week of February.