Zinc scrap and ingot prices have moved up since last Monday across all grades. Delhi and Mumbai markets were closed on Monday on the occasion of Gurupurab. There is a substantial improvement in demand for scrap driven by gradual opening of the export markets for finished goods. Scrap and ingot offers were also up on the back of high LME levels. The official three-month LME zinc was trading at $2,776.5/mt on Friday, down by $12.5/mt. In a month, LME zinc has climbed around 8pc.
In Delhi, the weekly Davis Index for zinc galvanizer’s dross rose by Rs8,403/mt ($113.59/mt) on Monday and settled at Rs190,283/mt ex-works producer. Offers were raised on the back of high price of primary zinc at around Rs230,000-232,000/mt and healthy demand from consumers including oxide manufacturers.
In Mumbai, the weekly Davis Index for zinc galvanizer’s dross rose by Rs4,842/mt to Rs180,325/mt ex-works producer on Monday. Most trades took place at the index price on the previous trading day, shared participants in both the cities.
In terms of spreads, market for zinc dross in both Mumbai and Delhi has strengthened. Spreads for the index contracted by 4pc in Delhi and by almost 3pc in Mumbai. Domestic prices of dross have inched up by 4pc in Delhi and 2pc in Mumbai on the back of steadily growing demand.
The weekly Davis Index for secondary zinc ingot in Delhi rose by Rs6,116/mt on Monday and settled at Rs192,283/mt ex-works consumer. Demand from brass manufacturers, especially from Delhi, Mumbai, Western and Central India, supported the prices. The weekly Index for secondary zinc ingot in Mumbai on Monday climbed by Rs3,875/mt to settle at Rs184,325/mt ex-works consumer. Some brass manufacturers said since raw material prices are hitting the roof, they might have to increase the prices of finished products. This may lead to demand from end-consumers to drop to some extent in the export markets.
The market for secondary zinc ingot in Mumbai and Delhi have strengthened in terms of spreads. The spreads for the indexes of secondary zinc ingot have widened by 2pc in Mumbai and 3pc in Delhi, compared to the previous week. Domestic prices have jumped 8-9pc in two weeks.
The Davis Index for new zinc die-cast settled at $1,987/mt, down by $15/mt on Monday from the week prior. Prices will be range-bound in the coming weeks, though it is expected to climb on the back of LME zinc prices. Several zinc mining companies have also projected prices to go up. Demand for primary zinc is expected to rise in 2021 which will support prices.
The weekly Davis Index for Zamak #3 settled at Rs235,363/mt del India consumer, down by Rs662/mt on Monday. Demand from auto sector, steady till now, is expected to improve in the coming week as auto manufacturers ramp-up production. Infrastructure expansions have also restarted which will potentially aid demand in the long run. The weekly Davis Index for Zamak #5 settled at Rs238,363/mt del India consumer, down by Rs662/mt. The markets for Zamak #3 and Zamak #5 strengthened over the week in terms spreads which widened by 0.08pc from the previous week for the respective indexes despite a fall in prices from the week prior.