The weekly Davis Index for galvanizer’s dross fell by Rs5,917/mt ($82/mt) to Rs147,000/mt ($2,042/mt) ex-works Mumbai producer on weak global cues and slow demand from zinc oxide manufacturers.
Consumption in China, a major consumer of zinc, lowered due to the coronavirus outbreak pressuring global prices. The weekly index for galvanizer’s dross on Monday fell by Rs3,375/mt to Rs154,325/mt ex-works Delhi producer.
In domestic markets, trades were affected by a global slowdown and remained thin. The index for secondary zinc ingots declined by Rs2,000/mt and settled at Rs170,200/mt ex-works Mumbai consumer. The index in Delhi declined by Rs4,167/mt to Rs166,283/mt ex-works consumer.
The Davis Index for new zinc diecast fell by $55/mt to $1,550/mt cfr India port due to a decline in the LME zinc contracts. Major shipping lines have hiked freight by around $250 for 20ft containers and by around $400 for 40ft containers effective Mar 1 as they faced a shortage of empty containers.
Zamak prices in India mirrored the LME prices which fell from the week prior. The three-month LME zinc contract fell by $64/mt to close at $2,105/mt Friday. Primary manufacturers reduced their prices by Rs2,200 for all grades including Special High-Grade and zinc alloys on Feb 17.
The Davis Index for Zamak #3 fell by Rs4,186/mt to Rs184,957/mt del India consumer from the week prior. The index for Zamak #5 fell by Rs4,186/mt to Rs187,957/mt del India consumer. Die casters in Mumbai cited weak Zamak demand from end-use consumers leading to fewer bookings. Zamak sales have declined to 1.5mt in February from the usual 2-2.5mt.
($1 = Rs71.97)