Prices for secondary zinc alloys climbed by 2-3¢/lb in tandem with rising LME Zinc prices and strong demand.
Weekly LME Zinc prices continued to trend up with the official LME Zinc cash price settling Tuesday at $3,002.50/mt ($1.3619/lb) up by $24/mt from Aug 10.
The downtrend witnessed in the zinc alloys market last week was a short-lived one, though some buyers took advantage of the lower prices and booked volumes before the market rose again. That said, the overall demand remains strong, especially with summer vacations coming to an end and smelters looking to restart operations by the end of August.
The weekly Davis Index for Zamak #2 rose by 3.4¢/lb to $1.615/lb delivered US consumer. Zamak #5 increased by 3.2¢/lb to $1.595/lb delivered while both Zamak #3 and #7 moved up by 2.9¢/lb to $1.575/lb delivered.
ZA 27 moved up by 2.5¢/lb to $1.725/lb delivered, while ZA 8 increased by 3¢/lb to $1.625/lb delivered and ZA 12 climbed by 3.5¢/lb to $1.655/lb delivered US consumer.
Still, macroeconomic factors continue to threaten the zinc alloys business. Producers anticipate a slight softening in activity due to the rising COVID-19 cases, currency fluctuations, and the semiconductor chips shortage. Market speculation may also increase in the current economic climate.