US secondary zinc alloy prices delivered consumer were unchanged Tuesday because the Covid-19 outbreak in the US has created uncertainty in the market.
The weekly Davis Index for Zamak #3 and #5 was unchanged at $1.16/lb and $1.17/lb, respectively, while the index for Zamak #2 held at $1.19/lb. Zamak #7 remained at $1.16/lb on Tuesday.
The indexes for zinc alloys also remained unchanged from last week, with ZA #12, ZA #27, and ZA #8 holding at $1.23, $1.24, and $1.21, respectively.
Market participants have taken a wait-and-see approach as news of the Covid-19 outbreak develops and the US government works to curtail its spread. The Federal Reserve cut interest rates on Tuesday in a rare move to spark consumption and assuage concerns that have crept into the market.
Market participants reacted positively to the rate cut and hope for higher movements in the zinc market, which has consistently declined since the virus was first reported in China.
Weak zinc demand has caused global inventories to rise for a fourth consecutive week. LME zinc prices have continued sliding with the three-month official LME zinc contract closing Tuesday at $2,002/mt, down by $60 from $2,062/mt on Feb 25.