The prices for US zinc scrap climbed down for some grades, mostly driven by a decline in LME Zinc pricing on Thursday in a quiet market as the holidays set in.
The LME Zinc market has steadily inched down through this week with the three-month official LME Zinc contract closing Wednesday at $2,803.50/mt down by $66.50/mt from $2,870/mt on Dec 17. The Davis Index will be closed for the Christmas holiday on Dec 24 and 25.
The considerable decline in LME zinc over the past week caused the galvanizer grades to drop by 1-1.5¢/lb despite adequate demand for the grade during a short trading week. As a result, the weekly Davis Index for zinc galvanizers bottom dross fell by a penny to 77.7¢/lb delivered US consumer. Zinc galvanizers top dross declined by 1.5¢/lb to 75.3¢/lb delivered.
The weekly Davis Index for new zinc diecast, however, remained unchanged at 80.7¢/lb delivered US consumer, as did special high-grade zinc premiums, which remained at 8¢/lb under the three-month LME Zinc contract. Market participants expect zinc premiums to reduce in the new year on increased supply of primary zinc as mines ramp up production.