US zinc secondary alloys prices inched up on Tuesday as the market returned from the Fourth of July weekend.
LME Zinc cash offers increased to $1.34/lb from $1.32/lb on Jun 29, while the official three-month LME Zinc contract, declined by $28.50/mt to close at $2,917.50/mt today.
The weekly Davis Index for Zamak #2 climbed by 0.3¢/lb to $1.575/lb delivered US consumer with both Zamak #3 and Zamak #7 rising by the same amount to $1.535/lb delivered. Zamak #5 grew by 0.7¢/lb to $1.56/lb delivered.
ZA 8 inched up by 0.2¢/lb to $1.585/lb delivered while ZA 27 increased by 0.3¢/lb to $1.685/lb delivered. The index for ZA 12 moved up by 0.2¢/lb to $1.615/lb delivered US consumer.
Demand continues to remain robust amid strong spot buys despite weakness from the automotive sector, a key consumer of zinc alloys, on strong business cues from the construction and steel industries. Conversely, long-term contracts remain subdued after these consumers chose to retreat and await a downward correction in prices. However, given the high costs for freight and for raw material like copper, magnesium, and aluminum producers believe alloy prices will remain high in the medium term.