US zinc scrap prices were unchanged for most grades on Thursday, as LME zinc rose slightly after declining for weeks.
The weekly Davis Index for new zinc diecast rose by a penny to 69¢/lb delivered US consumer on Thursday, while the index for zinc galvanizers bottom dross remained unchanged at 73¢/lb delivered. Zinc galvanizers top dross held at 68¢/lb delivered.
In the near-term, market participants expect downward pressure on US domestic zinc scrap prices, despite the current LME uptick, as temporary suspensions in scrapyards’ retail operations due to COVID-19 begins affecting demand and prices.
The US Senate passed the $1tn stimulus bill late Wednesday and it has somewhat calmed market sentiment. However, despite rising Chinese demand, scrap exports remain weak because other major economies have closed their borders to contain the pandemic.
The official three-month LME zinc contract closed Thursday at $1,848/mt, increasing by $3/mt from $1,845/mt on March 19.