US zinc secondary alloys prices increased by a little more than a penny on Tuesday in tandem with a strong LME Zinc market.
The official LME Zinc cash offers closed Tuesday at $1.1514/lb, up from $ 1.1272/lb on Oct 20, while the official three-month LME Zinc contract rose by $48/mt from last week, closing Tuesday at $2,552.50, compared with $2,504.50/mt on Oct 20.
According to market participants, LME Zinc closed last week with 5pc gains after approaching the $2,600/mt mark before trending down again this week. In the US, market participants have adopted a wait and see approach as the economic stimulus talks have stalled. Moreover, the country is just a week away from the US presidential election, the results of which, could determine the way forward for the zinc market.
The weekly Davis Indexes for Zamak #2 and Zamak #3 rose by 1.3¢/lb to $1.368/lb delivered US consumer, and $1.338/lb delivered, respectively. Zamak #5 increased the most of all grades, climbing 1.6¢/lb to $1.353/lb delivered while Zamak #7 moved up by 1.3¢/lb to $1.338/lb delivered on Tuesday.
The index for all zinc alloys grades rose by 1.3¢/lb with ZA 8, ZA12, and ZA 27 moving up to $1.388/lb delivered US consumer, $1.408/lb delivered, and $1.428/lb delivered, respectively.
The global zinc market is gauging the rising demand trends in China as well as the potential for a second round of shutdowns as COVID-19 cases rise, especially in Europe. The International Lead and Zinc Study Group (ILZSG) recently predicted a zinc surplus in 2021, which could also impact prices for the metal as the year draws to an end.