The prices for US zinc scrap declined or remained unchanged, depending on grade, on Thursday in a quiet market. 

 

The LME Zinc market slipped further this week, with the three-month official LME Zinc contract closing on Thursday at $2,731.50/mt down by $5.50/mt from $2,737/mt on Jan 14. 

 

Galvanizer grades declined this week with the weekly Davis Index for zinc galvanizers bottom dross dropping by 1.9¢/lb to 73.4¢/lb delivered US consumer. Zinc galvanizers top dross fell by 1.7¢/lb to 70.5¢/lb delivered.

 

The weekly Davis Index for new zinc diecast remained unchanged at 78.7¢/lb delivered US consumer, though some dealers saw prices for this grade inching up, especially in the Midwest to around 79¢/lb on improving demand from the auto sector. Special high-grade zinc premiums remained at 8¢/lb under the three-month LME Zinc contract as SHG zinc deals remained limited for the second consecutive week. 

 

A lowered outlook for domestic ferrous scrap prices in February against January settled prices, is likely to impact zinc scrap prices moving into next month. Moreover, the diminishing price trend for galvanizer grades is being ascribed to the swings in the LME Zinc market since the beginning of January and increasing zinc inventories globally. Moving forward though, consumption is expected to rise as economies around the world recover from the COVID-19 pandemic and demand from the public sector improves.

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