US zinc scrap prices rose on Thursday as competition for scrap between domestic buyers and importers increased. 

 

The official LME Zinc three-month price settled Thursday at $2,994/mt up $58/mt from Jul 22. 

 

The weekly Davis Index for zinc galvanizers bottom dross increased by 2¢/lb to 99¢/lb delivered US consumer, while zinc galvanizers top dross ticked up by 1¢/lb to $1.02/lb delivered on Thursday.

 

New zinc diecast also inched up by 0.7¢/lb to 96.2¢/lb delivered on an optimistic outlook from the automotive industry, where plants are resuming production in anticipation of the semiconductor chips shortage easing by August. 

 

Growing competition between importers and zinc scrap buyers has kept zinc scrap prices on an upward trajectory. However, some domestic participants believe that the current prices are too high and are taking advantage of maintenance-related shutdowns to stay out of the market. 

 

In the primary market, the Davis Index special high-grade premium decreased by 0.2¢/lb to 8.3¢/lb delivered. Zinc supply is expected to ease after news of a lawsuit’s settlement between Glencore and zinc buyers was reported earlier this week. Zinc buyers had alleged that the Swiss miner was trying to rig the zinc market to drive up the metal’s prices. However, the $9.85mn settlement brings the litigation, which began in 2014 to a close.

Leave a Reply

Your email address will not be published.