The prices for US zinc scrap ticked up for some grades, but held for others, on steady demand from the automotive and manufacturing industries.
The weekly Davis Index for new zinc diecast rose by 0.2¢/lb to 76¢/lb delivered US consumer on Thursday. The index for zinc galvanizers top dross also increased by 0.1¢/lb to 69.8¢/lb delivered, and was flat for zinc galvanizers bottom dross at 72.7¢/lb delivered in a quiet market for those materials.
The index for special high-grade zinc premium held at 8.5¢/lb delivered, under the three-month LME contract amid rising inventories.
The manufacturing and automotive industries have ramped up production, but not to the levels the market expected because COVID-19 infections have begun surging in the country.
The increase of positive cases has also created some market uncertainty, especially as the most impacted states have contemplated shutting down some businesses again. Most market participants don’t anticipate manufacturing facilities will shut down again, but they’re cautious and prefer waiting for a stronger trend to emerge.
LME zinc has also risen slowly but steadily over the past week. The three-month official LME zinc contract closed Thursday at $2,049/mt, increasing by $13/mt from 2,036/mt on June 25.