Prices of zinc scrap and ingots for major grades slipped in the week ending Oct 19 by 1-2pc while some remained flat compared to the prior week. Demand remains a major concern in the domestic regions with halted construction projects and slow movement in the sector. Low steel demand is affecting galvanizers, resulting in shortages of dross in cities like Delhi.
The Davis Index for zinc galvanizer’s dross in Delhi Monday settled at Rs164,875/mt ($2,249/mt) ex-works producer, marginally up by Rs500/mt from the preceding week. Traders reported a shortage of material which helped sustain the low orders for steel galvanizing. In Mumbai, the index for zinc galvanizer’s dross settled at Rs164,833/mt ex-works producer, down by Rs667/mt from the earlier week. Demand in Mumbai, too, is low.
The market for dross in Mumbai and Delhi weakened as spreads widened marginally. In the same week, the official three-month LME zinc contract was flat with a change of 1pc from the previous week to $2,434/mt.
The weekly Davis Index for secondary zinc ingot in Delhi settled at Rs166,500/mt ex-works consumer, down by Rs2,125/mt. Prices have fallen by approximately 1.2pc in Delhi on the back of slugglish demand from brass makers and galvanizers. The market for secondary zinc ingot weakened as spreads narrowed by 1.5pc while LME remained flat. For Mumbai the weekly index for secondary zinc ingot settled lower by Rs2,350/mt to Rs165,150/mt ex-works consumer.
The weekly Davis Index for new zinc die-cast settled at $1,903/mt cfr India port and fell by $40/mt on Monday. With low demand from secondary ingot producers, demand for new zinc die-cast has been affected.
The weekly Davis Indexes for Zamak #3 settled at Rs208,333/mt del India consumer, up Rs2,583/mt on Monday and for Zamak #5 settled at Rs211,333/mt del India consumer. Demand from auto sector is stable, supporting prices of zinc alloys. Prices of primary zinc remained flat at approximately Rs200,000/mt across India while prices of Zamak#3 and Zamak#5 rose, giving manufacturers a good margin last week.
The market for Zamak#3 and Zamak#5 strengthened as spreads widened by 1.08pc from the prior week given a price change of almost 1.25pc for both the grades while LME remained flat. Demand from infrastructure is expected to gain soon which could drive prices higher, said market participants.