US zinc scrap prices increased by 1-3¢/lb on Thursday after the LME zinc market began rising this week.
LME Zinc prices plummeted from record highs last week with the three-month official LME Zinc contract closing down $155/mt on Mar 3 but regained momentum on Thursday, when it closed at $2,810/mt, up $59/mt from the prior week.
Higher demand for galvanized material from the steel and construction sectors has offset the reduced orders from the automotive industry this week. Participants, however, view the softness in the auto sector as a seasonal trend that is likely to reverse at the beginning of the next quarter.
Zinc galvanizer grades increased by 3¢/lb with the weekly Davis Index for zinc galvanizers bottom dross rising to 76.5¢/lb delivered US consumer and zinc galvanizers top dross moving up to 73.5¢/lb delivered on strength in the steel industry.
The weekly Davis Index for new zinc diecast inched up by 0.7¢/lb to 77.7¢/lb delivered US consumer. In primary markets, the Davis Index special high-grade zinc premium held unchanged at 8¢/lb delivered amid muted trading for the material.