US zinc alloy prices ticked up across most grades on Tuesday amid increasing interest from hedge funds and commodity traders and increasing volumes.
The weekly Davis Index for both Zamak #3 and Zamak #7 increased to $1.109/lb delivered US consumer from $1.108/lb delivered. The index for Zamak #2 and Zamak #5 also rose by 0.1¢/lb to $1.139/lb delivered and $1.124/lb delivered, respectively.
The indices for zinc alloys also saw a slight uptick for ZA 8 and ZA 27 by 0.1¢/lb to $1.159/lb delivered and $1.189/lb delivered, respectively. However, the index for ZA 12 moved down one-tenth of a penny to $1.177/lb delivered US consumer on Tuesday.
The official LME zinc cash offers closed Tuesday at $0.9081/lb down from $0.9188/lb on June 2. The official LME zinc three-month contract also closed on Tuesday at $2,012/mt down by $17.5/mt from $2029.5/mt, on June 2.
The interest from automotive producers in zinc alloys, ZA 8 and ZA 27 could increase after a study by Cranfield University’s Sustainable Manufacturing Systems Centre revealed that automotive parts made of zinc alloys could enhance their longevity.
In the short-term though, producers worry about the supply gaps that are keeping volumes light. However, market participants remain optimistic about business picking up by Q3 2020.