US secondary zinc alloys prices decreased by 1-3¢/lb in tandem with falling LME Zinc prices.
LME Zinc cash offers closed at $1.241/lb down from $1.279/lb last week while the official three-month LME Zinc contract declined by $67/mt from Mar 2 to $2,780/mt on Tuesday.
The weekly Davis Index for all Zamak grades fell by 3.5¢/lb with Zamak #2 and Zamak #5 settling at $1.46/lb and $1.445/lb, respectively. Both Zamak #3 and Zamak #7 declined to $1.43/lb delivered.
ZA 8 and ZA 12 also decreased by 3.5¢/lb to $1.48/lb delivered and $1.50/lb delivered US consumer, respectively, while the index for ZA 27 slipped by 1.5¢/lb to $1.53/lb delivered.
The zinc alloys market remains robust despite the slide in LME Zinc prices as weaker demand from the auto industry is offset by rising orders from the construction sector. Market participants believe the current softness in the auto sector is a seasonal trend and expect demand to rise in the next quarter.