US zinc secondary alloys prices increased by around 3¢/lb on Tuesday as demand improved and LME Zinc cash offers inched up.
LME Zinc cash offers closed at $1.2887/lb on Tuesday up from $1.2768/lb last week while the official three-month LME Zinc contract trended sideways, at $2,855/mt compared to $2,857/mt on Mar 16.
The weekly Davis Index for Zamak #2 increased by 2.8¢/lb to $1.513/lb delivered US consumer while both Zamak #3 and Zamak #7 increased by the same amount to $1.483/lb delivered. Zamak #5 increased by 3.1¢/lb at $1.498/lb delivered.
All the ZA grades increased by 2.8¢/lb with the index for ZA 8 and ZA 12 settling at $1.533/lb delivered and $1.553/lb delivered US consumer, respectively, while ZA 27 increased to $1.583/lb delivered.
Higher demand from the construction industry has spurred zinc alloy prices higher this week. Producers, however, expect more volatility in the near term on lower treatment charges at Chinese smelters and automotive production setbacks due to the chip shortage, which may impact order books.