The weekly Davis Index for zinc galvanizer’s dross on Monday in Delhi settled at Rs194,833/mt ($2,688.3/mt) ex-works producer, up by Rs2,166/mt on healthy trades despite high offers. Galvanizing units have pushed prices of dross on the back of higher primary zinc prices. Demand for dross remained firm too, said traders. The weekly Davis Index for zinc galvanizer’s dross in Mumbai settled at Rs191,667/mt ex-works producer, up by Rs3,778/mt.
Markets for zinc dross in Delhi and Mumbai weakened as spreads expanded for the scrap grade. The spread for Delhi index widened by 1.84pc while the spread for Mumbai index widened by 1pc from the previous week. The official LME zinc three-month contract is up by $91.5/mt to $2,861.5/mt on Friday from a week ago.
The weekly Davis Index for secondary zinc ingot in Delhi rose by Rs 1,111/mt to Rs198,000/mt ex-works consumer on Monday. Market for secondary zinc ingot in Delhi weakened as spreads narrowed by 2.40pc from the previous week. Prices are up in Delhi on the back of higher scrap prices and good demand from brass manufacturers.
In Mumbai, the weekly Davis Index for secondary zinc ingot settled at Rs195,750/mt ex-works consumer, up by Rs3,300/mt. The market weakened with the spreads for the index contracting by 1.20pc from the previous week.
The weekly Davis Index for new zinc diecast settled at $2,113/mt, down by $7/mt but expected to move up this week if LME continues to climb. Demand from Indian buyers remains strong.
The weekly Davis Index for Zamak #3 settled at Rs245,425/mt del India consumer, up by Rs3,656/mt on Monday. Prices continue to climb for zinc alloys in line with primary zinc prices. The Davis Index for Zamak #5 rose by Rs3,656/mt Monday to Rs248,425/mt del India consumer from the previous week. Markets for Zamak #3 and Zamak #5 weakened as spreads for the indexes narrowed by almost 2pc.
Zinc prices across grades have jumped compared to last week as offers were revised upwards for scrap and ingots. The official three-month LME zinc contract rose by $91.5/mt to $2,861/5/mt on Friday from the week prior. Prices of primary zinc rose in line with LME in a week to approximately Rs235,000-240,000/mt. Rise in LME coupled with a rise in special high-grade zinc resulted in higher offers for zinc grades.