The Davis Index for secondary zinc ingots fell by Rs6,167/mt ($86/mt) to Rs183,450/mt ($2,566/mt) ex-works Delhi consumer on Monday, as demand lagged from the consuming sectors, according to traders.
The Davis Index for secondary zinc ingots settled at Rs180,700/mt ex-works Mumbai consumer, down by Rs1,167/mt on Monday from the prior week. Manufacturers said that demand from auto sector has improved in January but lagged towards the end of this month, pushing prices of zinc ingots down.
The fall in LME zinc drove primary zinc producers to lower their offers of Special High Grade zinc across India by Rs6,000/mt at Rs 197,000/mt. As a result, zinc scrap prices in India fell for most grades. The Davis Index for zinc galvanizer’s dross settled at Rs161,450/mt, down by Rs500/mt ex-works Mumbai consumer.
The index for zinc galvanizer’s dross ex-works Delhi consumer settled at Rs160,450/mt, down by Rs667/mt Monday from the prior week. Dross is used to make zinc oxide, consumed by the tyre manufacturers. A rise in raw material prices of zinc dross tends to squeeze margins with the tyre industry locking in its consumer prices, according to a dross seller.
Importers of new zinc diecast said that with the fall in LME zinc, import prices have also fallen on Friday from the week prior. The weekly Davis Index for new zinc diecast settled at $1,600/mt cfr India port Monday from $1,625/mt the prior week. Demand from secondary zinc ingot producers remained flat in India, said importers.
($1=71.44)