In India, prices of zinc dross and secondary zinc ingots rose in the week ending Sep 21 driven by LME zinc gains. The official three-month LME zinc contract settled at $2,530/mt as on Friday from the prior week by $79/mt or 3pc which resulted in higher primary zinc prices and scrap offers.

 

Zinc Dross

The weekly Davis Index for zinc galvanizer’s dross on Monday settled at Rs161,667/mt ($2,201/mt) ex-works Mumbai producer, up by Rs4,667/mt. Demand was stable but offers were up in Mumbai as prices of primary zinc rose. 

 

The weekly Davis Index for zinc galvanizer’s dross in Delhi Monday settled at Rs164,375/mt ex-works producer, up by Rs6,153/mt.  The market for dross in Delhi strengthened in terms of spread, which narrowed slightly from the prior week as prices were up by 4pc and LME gained around 3pc. The market in Mumbai, however, weakened despite prices rising by almost 3pc but spreads widened marginally by 0.16pc. 

 

Secondary Zinc Ingot

Domestic prices of secondary zinc ingots rose in the week by Rs2,000-2,500/mt from the prior week as demand from brass manufacturers was firm. Offers were raised mostly in anticipation of rising demand for secondary ingots from brass manufacturers on the back of festive season, which supports demand for brass commodities. 

 

The weekly Davis Indexes for secondary zinc ingot in Delhi Monday settled at RS168,500/mt ex-works consumer, up by Rs2,300/mt and in Mumbai settled at Rs166,600/mt ex-works consumer, up by Rs2,400/mt from last Monday. 

 

The market for secondary zinc ingots weakened in Mumbai and Delhi despite a price rise of almost 1.5-2pc as spreads contracted by 1.5pc from the week prior while LME gained 3pc. Domestic prices could rise further in the coming week if LME maintains these levels. 

 

New Zinc Die-cast 

The weekly Davis Index for new zinc die-cast rose by $45/mt to $1,988/mt cfr India port on Monday. Several trades occurred as demand from secondary zinc ingot makers increased and is expected to go up further. The market for new zinc die-cast weakened as spreads widened marginally by 0.70pc from the previous week. 

 

Zinc Alloy

The weekly Davis Index for Zamak #3 settled at Rs215,917 del India consumer, up by Rs4,917/mt on Monday. Demand from die casters has renewed as component sector gained momentum ahead of the festive season. Projections of auto sales remains positive for September and most die-casters concur as demand from auto precedes demand from infrastructure. The Davis Index for Zamak #5 rose by Rs4,917/mt and settled at Rs218,917/mt del India consumer. 

 

In North India, prices offered for Zamak #3 and Zamak #5 is higher than prices in South India. Across India, prices of primary zinc ranged between Rs210,000-212,000/mt up by Rs5,000/mt from the week prior. An uptick in primary zinc prices leads to higher prices of zinc alloys and dross. 

 

Market participants informed that zinc consumption is still subdued as construction sector – in which zinc is needed for galvanising steel — is lagging. Demand from auto and auto component sector is supporting the market. Resurgence of COVID-19 is also causing uncertainties. Manufacturers and traders said some of their workers are under quarantine which is hampering production and delivery in these trying times.

 

($1=Rs73.44)

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