US zinc scrap prices, especially for the dross grades, increased on Thursday amid strong sales.
The three-month official LME zinc contract increased today to close at $2,934/mt up by $19/mt from Jun 24 amid a strengthening US dollar.
The weekly Davis Index for zinc galvanizers bottom dross increased by 3.3¢/lb to 92.8¢/lb delivered US consumer while zinc galvanizers top dross rose by 0.9¢/lb to 98.8¢/lb delivered.
A busy zinc scrap market is witnessing quick sales for the dross grades. The strongest demand for these is seen in the galvanizing market on higher sales of galvanized sheet and steel, as well as the zinc oxide market. Still, participants expect demand to weaken slightly in the summer months as some smelters go offline for maintenance for a few weeks in July and August. The weakness is expected to be short-term with sales resuming once the smelters resume operations after the short downtime.
New zinc diecast inched down by 0.3¢/lb to 94.5¢/lb delivered US consumer as the softness in the automotive market caught up with the grade. Still high demand from the construction sector is offsetting any further weakness in this grade and keeping it rangebound.
In the primary market, the Davis Index special high-grade (SHG) zinc premium remained unchanged at 8.5¢/lb delivered.