The weekly Davis Index for new zinc diecast increased by 4.5¢/lb to 74.5¢/lb delivered US consumer on Thursday, as demand from automotive and vehicle parts manufacturers began trickling in.
The index for zinc galvanizers top dross also rose by 1.7¢/lb to 69.7¢/lb delivered US consumer, but trended flat to down for galvanizers bottom dross, declining by 0.3¢/lb to 72.7¢/lb delivered. The index for special high-grade zinc premium was unchanged at 8.5¢/lb delivered, under the three-month LME contract.
Demand for zinc is rising, while supply remains low as the automotive sector looks to normalize its production and sales targets by the third quarter. Zinc is a galvanizing component to manufacture auto parts and bodies, and had remained relatively subdued until the factory restarts earlier this month.
The three-month official LME zinc contract closed Thursday at $1,916/mt, down by $77.5/mt from $1,993.5/mt on May 21. LME zinc movements were muted this week after it failed to extend its recent price surge because of trade tensions between US and China, which have weighed on the base metals complex this past week.