Zinc scrap prices for all grades rose by 1-3pc from the prior week on the back of robust demand. Markets strengthened in terms of spreads for each grade. Indexes rose on the back of improving demand and higher LME zinc prices which resulted in higher offers compared to the prior week for the grades. The official LME Zinc contract dipped slightly by $6.5/mt or down 0.23pc on Friday to $2,770/mt from the previous week.
The Davis Index for zinc galvanizer’s dross Mumbai on Monday settled at Rs182,333/mt (42,472/mt) ex-works producer, up by Rs2,008/mt from the previous week followed followed by higher offers amid increased raw material prices and strong domestic demand from oxide manufacturers. Oxide manufacturers had expected demand improvement in Q3 and Q4 and as economies are recovering from the pandemic. The Davis Index for zinc galvanizer’s dross Delhi Monday moved up by Rs2,307/mt and settled at Rs192,590/mt ex-works producer from the week prior levels. Oxide manufacturers told Davis Index that overseas demand is getting back to normal after being hit by COVID-19 lockdowns.
Markets for zinc dross in both Mumbai and Delhi strengthened in terms of spreads. Index for Mumbai rose by 1.11pc and for Delhi by 1.21pc. The spreads for Delhi index narrowed by 1.56pc and for Mumbai by 1.39pc, relative to last Monday.
Secondary zinc ingot
The Davis Index for secondary zinc ingot in Delhi is up by Rs3,807/mt to Rs196,090/mt ex-works consumer on Monday from the preceding week driven by higher offers as LME is on the higher end and strong demand from brass manufacturers continue to drive prices higher. The weekly index for secondary zinc ingot in Mumbai rose by Rs6,158/mt to Rs190,483/mt ex-works consumer on Monday. Offers for secondary zinc ingots will rise further as some are offering above Rs200,000/mt ex-works consumer prices in Delhi as raw material prices are shooting up.
Markets strengthened for secondary zinc ingots as spreads widened for the ingot for both Delhi and Mumbai indexes. Spreads for Mumbai index widened by 3.43pc and for Delhi index by 2.30pc, both from the previous week while the index for Mumbai gained 3.34pc and Delhi 1.98pc from the week prior levels.
New zinc diecast
The Davis Index for new zinc diecast Monday settled at $2,059/mt cfr India port up by $122/mt on back of better demand from importers. Offers are rising as LME is up and so is demand. New zinc is majorly used to manufacture secondary zinc ingots and demand for secondary zinc ingot has suddenly risen over the past couple of weeks and is expected to remain at these levels or rise further, according to market participants. Spreads for the index narrowed depicting a strengthening market as spreads contracted by 4.57pc. The index in a week has jumped by 6.30pc.
The Davis Index for Zamak #3 settled at Rs239,200/mt del India consumer on Monday up by Rs3,837/mt from the previous week while the index for Zamak #5 settled at Rs242,200/mt del India consumer, up by Rs3,837/mt from the preceding week. Prices were slightly higher in the southern states of India on the back of higher demand from auto and auto component manufacturers. Offers in the region reached Rs245,000/mt del rates while bids were under Rs240,000/mt, said die-casters. Markets for zinc alloys strengthened as spreads for both Zamak #3 and Zamak #5 widened by over 2.4pc from the previous week.
Primary zinc on Monday was rangebound at Rs223,000-233,000/mt del India consumer, up by approximately Rs1,000-1,500/mt from the previous week.
Prices in India for zinc across grades rose for the fifth consecutive week. LME zinc is up almost 8pc in a month which is the primary cause for offers to be higher starting with primary zinc prices in India. With a rise in primary zinc prices, all other grades are also up.
Demand too has improved compared to previous month driving zinc prices higher.