The Davis Index for US zinc alloys delivered US consumer rose slightly after making gains on the LME and breaking a weeks-long trend of declines.
The weekly Davis Index for Zamak #2 increased to $1.062/lb delivered US consumer on Tuesday from $1.035/lb delivered on March 24, while Zamak #3 rose to $1.037/lb delivered from $1.005/lb delivered during the same period. The index for Zamak #5 also went up to $1.052/lb delivered from $1.020/lb delivered last week, as did Zamak #7, which rose to $1.037/lb delivered US consumer on Tuesday from $1.005/lb delivered on March 24.
The indexes for zinc alloys ZA 8, ZA 12, and ZA 27 also rose to $1.087/lb delivered, $1.107/lb delivered, and $1.117/lb delivered, respectively.
After weeks of declines, during which LME zinc fell by close to 20pc between Jan 1 and last week, the metal’s prices have increased on the LME. The official LME zinc cash offer, which is used to calculate zinc alloy prices, closed Tuesday at $0.8471/lb, rising from $0.8264/lb on March 24. The official three-month LME zinc contract also surged to close Tuesday at $1,879.50/mt, up by $43.5/mt from $1,836/mt on March 24.
However, domestic market participants remain bearish about the short- to medium-term zinc alloy market and expect prices to fall, as automobile manufacturing, which uses this material extensively, remains suspended across most of North America following COVID-19 containment measures.