US zinc alloy prices declined by a little more than a penny across all grades on Tuesday in a market where the only buying was out of necessity.
The weekly Davis Index for both Zamak #3 and Zamak #7 fell by 1.4¢/lb to $1.095/lb delivered US consumer. The index for Zamak #2 and Zamak #5 also dropped by 1.1¢/lb and 1.4¢/lb to $1.123/lb delivered and $1.110/lb delivered, respectively.
The indices for zinc alloys, which had ticked up last week, also fell during the week. The index for ZA 12 dropped by 1.2¢/lb to $1.165/lb, and declined by 0.4¢/lb for ZA 27 to $1.185/lb delivered. The Davis Index for ZA 8 moved down by 1.4¢/lb to $1.145/lb delivered US consumer on Tuesday.
The official LME zinc cash offers closed Tuesday at $0.9104/lb, up from $0.9081/lb on June 9. The official LME zinc three-month contract also closed Tuesday at $2,018/mt, increasing by $6/mt from $2,012/mt on June 9.
Physical business is normalizing, but producers remain wary about the uncertainty over the economy reopening, especially after the news of a second round of COVID-19 infections hitting countries like China and states that have reopened for business. The vagaries of the equity market are also limiting buyers’ risk-taking abilities, a producer told Davis Index, because most of the trade is still being done on a spot price basis.
Looking forward, market participants expect a slight uptick after the market was buoyed by positive macroeconomic reports this week.