Domestic zinc prices fell over the week ending on Monday, as offers were lowered in line with a drop in LME zinc official contract. Demand was not strong enough to support prices which led to offers being revised downwards. The official three-month LME zinc contract on Friday settled at $2,767/mt, down $69.5/mt or by 2.45pc in a week. Weekly prices in Delhi fell more than prices in Mumbai for dross and secondary zinc ingot.
The weekly Davis Index for zinc galvanizer’s dross in Mumbai on Monday settled at Rs190,833/mt ($2,610/mt) ex-works producer, down Rs2,667/mt as offers were pushed lower in a low demand market. The market for the grade strengthened as spreads narrowed for the price index. Some galvanizers offered dross at over Rs195,000/mt but most deals were concluded around the index.
The weekly Davis Index for secondary zinc ingot settled at Rs198,000/mt ex-works Mumbai consumer, down by Rs2,000/mt from the preceding week. Demand in Mumbai was weak on Monday. Offers were lowered to attract trades which might be reflected in the following days if LME levels stay on the same levels or drop further. The market for secondary zinc ingot in Mumbai strengthened despite a fall of 1pc. Spreads for the price index widened by 1.57pc from the prior week, portraying strengthened market.
Prices in Delhi slipped by 2-3pc for dross and secondary zinc ingot. The weekly Davis Index for zinc galvanizer’s dross reached Rs190,833/mt ex-works producer, down by Rs2,667/mt amid lower offers in a bid to expand trades. Prices had jumped significantly on prior Monday and several market participants hesitated to trade at those levels, bidding at a lower levels of around Rs185,000/mt while offers exceeded Rs191,000/mt in Delhi. Market for the grade weakened in terms of spreads which widened by 1.28pc from the prior week.
The weekly Davis Index for secondary zinc ingot in Delhi settled at Rs200,722/mt ex-works consumer, down by Rs4,834/mt due to low bids and a drop in LME which led to final drop in offers. Furthermore, demand from brass manufacturers was low on Monday but it should not have a significant long-term effect on prices. Brass manufacturers are eyeing the right opportunity to procure zinc and brass scrap, as both commodities’ prices are high, squeezing their margins. Markets for secondary zinc ingot in Delhi strengthened in terms of spreads which widened by 0.50pc.
The Davis Index for Zamak #3 on Monday settled at Rs237,667/mt del India consumer, down by Rs4,579/mt from prior Monday. Prices fell in synch with a drop in LME contract. However, demand was firm from diecasters in the southern parts of India while demand in north and west India was slightly weak. The weekly Davis Index for Zamak #5 dipped by Rs4,579/mt to Rs240,667/mt del India consumer. Markets for the zinc alloy grades strengthened despite a fall of almost 2pc in prices compared to previous week. Spreads for both the grades widened by a marginal 0.8pc.
The weekly Davis Index for new zinc diecast on Monday settled at $2,540/mt cfr India port, up by $42/mt. Offers for US origins were heard between $2,550-2,560/mt. Prices should have dropped in line with LME but firm demand from Indian importers and other east Asian nations supported prices. Spreads for the price index narrowed by 3.73pc, representing a strengthened market in India.