Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

The weekly Davis Index for US zinc alloys Zamak #5 increased on Tuesday to $1.073/lb delivered US consumer from $1.066/lb delivered in anticipation of the domestic market reopening for business.


Zinc alloy grades mostly rose within a narrow range after news that some automakers would tentatively reopen their manufacturing facilities in early May brought optimism to the market. 


The weekly index for Zamak #2 remained unchanged at $1.091/lb delivered US consumer, but rose slightly for Zamak #3 and Zamak #7 to $1.056/lb delivered from $1.051/lb delivered for both grades.


The index for zinc alloys ZA 8, ZA 12, and ZA 27 increased by $0.002/lb for each grade to $1.098/lb delivered, $1.148/lb delivered, and $1.158 delivered US consumer, respectively.


Market participants anticipate long-term market recovery to begin in Q3 2020, as demand strengthens and prices accelerate. The second quarter could remain slow, despite some manufacturing facilities restarting, because slow mining restarts will constrain supply.


The official LME cash offers closed Tuesday at $0.8686/lb, rising slightly from $0.8509/lb on April 21, while the three-month official LME zinc contract closed Tuesday at $1,925/mt, up by $38/mt from $1,887/mt in the prior week.


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