The prices for US zinc scrap trended flat to up on Wednesday due to the short Thanksgiving holiday week and another increase in the LME Zinc market.
The LME Zinc market surged again with the three-month official LME Zinc contract closing on Wednesday at $2,744/mt up by $17.50/mt from $2,726.50/mt on Nov 19, as global supply remained tight. The Davis Index will be closed on Nov 26-27 due to the Thanksgiving holiday.
The weekly Davis Index for new zinc diecast increased by 0.6¢/lb to 76.9¢/lb delivered US consumer on continued demand from the automotive sector for this grade.
The prices for both the dross grades which surged last week were unchanged. The index for galvanizers bottom dross held at 77.7¢/lb delivered US consumer, while galvanizers top dross was flat at 77.9¢/lb delivered.
Demand for zinc scrap remains strong in the domestic market as the automotive and manufacturing sectors continue to ramp up their activity, which in turn, is raising steel volumes. Galvanizers are looking toward more material to keep up with the demand from the steel industry, thus buoying the prices for zinc dross grades.
Globally too, manufacturers and the car making industries, especially in the European region are ramping up their production in anticipation of potential shutdowns due to the second wave of rising COVID-19 infections in those countries.
The index for special high-grade zinc premium was flat at 8.5¢/lb under the three-month LME Zinc contract on Thursday. SHG zinc premiums are likely to remain flat through the rest of this year as market participants adopt a wait and see approach to the policies of the new US administration that will take office in Jan 2021.