US zinc scrap prices increased on Thursday amid bullish sentiment after President Biden announced a $2tn infrastructure package on Wednesday.
The weekly Davis Index for zinc galvanizer grades rose by 1.5¢/lb on Thursday with zinc galvanizers bottom dross and zinc galvanizers top dross settling at 76¢/lb and 73¢/lb delivered US consumer, respectively.
New zinc diecast prices increased on adequate demand, with the index inching up by 0.2¢/lb to 79.3¢/lb delivered on Thursday.
Sellers expect demand to outpace supply in the zinc market over the next few months in anticipation of increased buying of dross grades from the coating industry. The consumption of steel is also likely to increase during the year because of the emphasis on Made in America products to be used for the various infrastructure projects announced under the American Jobs Plan on Wednesday.
The Davis Index special high-grade zinc premium held unchanged at 8¢/lb delivered on sluggish trading as global zinc inventory continued to climb throughout March.
LME zinc prices increased this week with the three-month official LME zinc contract closing at $2,809/mt on Thursday, up by $37/mt from Mar 25.