US zinc scrap prices increased by 3-5¢/lb on Thursday in tandem with soaring LME Zinc prices and strong demand.
The three-month official LME zinc contract increased by $121/mt to close at $2,918/mt today, compared to $2,797/mt on Apr 22 on a bullish macroeconomic sentiment and improving demand.
The weekly Davis Index for zinc galvanizers bottom dross rose by 3¢/lb to 82¢/lb delivered US consumer while zinc galvanizers top dross increased by the same amount to 79¢/lb delivered.
New zinc diecast increased by 5¢/lb to 86¢/lb delivered US consumer as demand for the material strengthened while the Davis Index special high-grade zinc premium remained unchanged at 8.1¢/lb delivered on muted spot trades.
The boost in zinc prices this week is likely to improve flows further as sellers look to offload any excess materials and realise better margins. Buyers also remain active in the market. Offers for diecast are being heard as high as 87-88¢/lb as demand for zinc scrap bolsters in this buoyant market.