US zinc alloy prices decreased by 2-3¢/lb at the start of a shorter business week that began with Memorial Day.
The weekly Davis Index for Zamak #3 and Zamak #7 both fell by 2.9¢/lb $1.114/lb delivered US consumer on Tuesday. The index for Zamak #2 dropped by 2.9¢/lb to $1.144/lb and declined for Zamak #5 by 2.6¢/lb to $1.127/lb delivered.
The indices for zinc alloys ZA 8 and ZA 12 both fell by 2.9¢/lb to $1.164/lb delivered US consumer and $1.184/lb delivered, respectively, while the index for ZA 27 decreased by 3.9¢/lb to1.204/lb delivered on Tuesday.
The price declines were expected as the alloys market looks to stabilize after a steep price surge last week caused by automotive factory restarts, short coverings, and higher freight costs.
The official LME zinc cash offers closed Tuesday at $0.8958/lb, declining from $0.9149/lb on May 19. The official LME zinc three-month contract also closed Tuesday at $1,976/mt, down from $2,016.5/mt on May 19.
Some market participants cautioned the market could remain volatile in the short-term as supply and demand seek balance after nearly two months of near-flat trends. These producers are eyeing the end of this quarter when they the market will calm to more manageable levels.