The prices for US zinc scrap were flat for most grades as the market continued to monitor the slides on LME Zinc. The only exception was new zinc diecast, which inched up by a penny to make up for some of its losses from last week.
The weekly Davis Index for new zinc diecast increased by 1¢/lb to 74.3¢/lb delivered US consumer. Galvanizer grades remained unchanged on Thursday amid supply and demand softness. The index for zinc galvanizers bottom dross was flat at 76¢/lb delivered US consumer, while zinc galvanizers top dross held at 72¢/lb delivered on Thursday.
The index for special high-grade zinc premium, which had declined by 0.1¢/lb last week remained at 8.5¢/lb under the three-month LME contract amid weak LME Zinc prices.
Market participants remain bullish about the medium-term trends on LME Zinc and expect it to recover to at least $2,580/mt. However, its prices have witnessed a volatile two weeks. After inching up a bit last week, zinc prices slipped again with the three-month official LME Zinc contract closing on Thursday at $2,391.50/mt down by $92.5/mt from $2,484/mt on September 17.
The supply and demand for zinc galvanizer grades have remained constant over the past two weeks as US steelmakers ramp-up production. The market remains weighed down by macroeconomic uncertainties, especially, from the potential of COVID-19 infections rising again in the fall season. Fluctuating exchange rates, high freight costs, and continued tightness in zinc ore supply have kept the market in a wait and see mode.