The weekly Davis Index for new zinc diecast dropped by 5¢/lb to 65¢/lb delivered US consumer, as demand from the automotive industry dried up because of COVID-19-related factory shutdowns.
Low demand as well as supply constraints had the index for galvanizers top dross and galvanizers bottom dross hold at 68¢/lb delivered consumer and 73¢/lb delivered, respectively.
Market participants expect prices to either remain flat or fall further as supply adjusts to declining demand for zinc scrap in the domestic market. The extension of factory shutdowns and operational suspensions by most automakers has also impacted supply of, and demand for, the metal, which is widely used as a galvanizer in the automotive industry.
The three-month official LME zinc contract, however, increased on Wednesday and closed at $1,858.5/mt, increasing by $10.5/mt from its March 26 close of $1,848/mt.