Prices for US zinc scrap continued trending flat to down for a second consecutive week on Thursday amid soft demand.
The weekly Davis Index for new zinc diecast moved down by 0.3¢/lb to 76¢/lb delivered US consumer. The index for zinc galvanizers bottom dross held at 73.5¢/lb delivered, while zinc galvanizers top dross was also unchanged at 70.8¢/lb on Thursday.
The index for SHG zinc premium was flat at 8.5¢/lb under the three-month LME zinc contract on weak demand, despite adequate supply.
LME zinc trended down after a week of increases, with the three-month official LME zinc contract closing Thursday at $2,382/mt, down by $8/mt from $2,390/mt on August 6. Despite the slight decline this week, LME zinc climbed by around 35pc from its mid-March nadir.
Demand for the metal has softened outside of China, even as inventories increase, after zinc supply was restored last week, market participants said. Recent reports also indicated that zinc stocks in LME warehouses have kept rising in spite of muted demand. Zinc stock lying in LME warehouses is estimated at 213,000mt, indicating a rise of 162,000mt over the last seven months.
Domestic zinc scrap prices have followed global cues and are moving within a very narrow range, as demand remains weak and uncertainties stemming from rising COVID-19 infections mount.