The weekly Davis Index for new zinc diecast increased to 74.8¢/lb delivered US consumer on Thursday from 74.5¢/lb, as demand stabilized.
The index for zinc galvanizers top dross and zinc galvanizers bottom dross decreased slightly to 69.5¢/lb delivered US consumer and 72.5¢/lb delivered, respectively. The indices for both grades fell by 0.2¢/lb. The index for special high-grade zinc premium was flat at 8.5¢/lb delivered under the three-month LME contract.
Market participants anticipate zinc demand will rise as the automotive sector looks to normalize its production and sales targets by this quarter. However, supply chain gaps have prevented vehicle manufacturers from ramping up production as quickly as they would like, which could, in the short term, hurt demand and zinc scrap prices.
The three-month official LME zinc contract closed Thursday at $2,000.5/mt, rising by $84.5/mt from $1,916/mt on May 28.