US secondary zinc alloy prices delivered US consumer decreased by 3.7¢/lb because COVID-19 has caused supply and demand uncertainties.
The Davis Index for Zamak #3 fell by 3.7¢ to $1.118 delivered US consumer on Tuesday, as did Zamak #5, which dropped to $1.133/lb delivered US consumer. The indexes for Zamak #2 and Zamak #7 both decreased by 3.7¢ to $1.148/lb and $1.118/lb, respectively.
Among ZA alloys, the index for ZA #8 decreased by 3.8¢ to $1.168/lb delivered US consumer, while the indexes for ZA #12 and ZA #27 both fell by 3.7¢ to $1.188/lb and $1.198/lb delivered US consumer, respectively.
Domestic market participants aren’t experiencing supply constraints yet, but they project market volatility until there is more clarity about how COVID-19’s spread will impact the US economy. The EU, China, and other Asian countries struggling to contain the virus, have reported supply issues for manufactured parts, which use zinc.
In the interim, prices will likely move within a narrow range as market participants await direction from macroeconomic trends and the LME zinc contracts. The official three-month LME zinc contract closed Tuesday at 2,020/mt, up by $18 from $2,002/mt on March 3.