US zinc secondary alloys prices moved up or down by less than a penny on Tuesday.

 

LME zinc paused on Tuesday after increasing to its highest levels since January earlier this month, with the official LME zinc cash offers closing Tuesday at $1.006/lb slightly up from $1.003/lb on July 21. The official three-month LME zinc contract closed slightly lower than last week at $2,215/mt down by $3/mt from $2,218/mt on July 21.

 

The weekly Davis Index for Zamak grades moved in the range of 0.1-0.4¢/lb with Zamak #2 falling by 0.4¢/lb to $1.223/lb delivered US consumer on Tuesday. Zamak #3 rose by 0.1¢/lb to $1.198/lb delivered while Zamak #5 declined by the same amount to $1.211/lb delivered. The index for Zamak #7 rose to $1.198/lb delivered US consumer, stronger by 0.1¢/lb.

 

The indexes for zinc alloys saw wider movements and ticked up or down by 0.1-09¢/lb. ZA 8 saw the steepest decline of all secondary zinc alloys, inching down by 0.9¢/lb to $1.238/lb delivered consumer, whereas ZA 27 gained by 0.1¢/lb to settle at $1.288/lb delivered on Tuesday. The Davis Index for ZA 12, however, declined by 0.6¢/lb to $1.261/lb delivered US consumer. 

 

The zinc alloys market continues to benefit from industry restarts and improving demand. However, the rise has been slower-than-expected with market participants remaining concerned over potential shutdowns as the number of COVID-19 infections across the US rise steadily.

 

Broader manufacturing indicators remain strong and a disruption in the supply chain for primary zinc is keeping prices at elevated levels, according to market participants. However, producers remain cautious and buyers reluctant in the short-term, until the market sees more signs of a strengthening economy or COVID-19 cases abating.

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