The weekly Davis Index for secondary zinc ingot fell by Rs4,500/mt ($60/mt) to settle at Rs153,200/mt ex-works Mumbai consumer, amid sluggish demand from consuming sectors. Trading thinned on Monday ahead of a holiday for the Indian festival of Holi.
The Davis Index for secondary zinc ingot in Delhi settled at Rs149,950/mt ex-works, down by Rs4,125/mt. Prices were under pressure due to a slowdown in the auto sector. Additionally, demand from galvanisers, paint manufacturers, ceramic and cosmetic producers also remained subdued.
Dross buyers manufacturing zinc oxide, reduced bookings as demand from end-use consumers failed to pick up. The weekly Davis Index for galvanizer’s dross declined by Rs7,250/mt in Delhi and settled at Rs149,950/mt and the index in Mumbai settled at Rs145,950/mt, down by Rs5,625/mt on Monday.
Zinc scrap prices in India fell for a second consecutive week in March. The Davis Index for new zinc diecast settled at $1,450/mt cfr India port, down by $31/mt. Importers expect prices to decline further driven by a fall in LME and a slowdown in the global economy.
Zamak prices did not mirror the fall in the LME zinc contracts this week and rose on Monday. The three-month LME zinc contract fell by $40/mt on Friday from the week prior and settled at $1,978/mt.
The Davis Index for Zamak #3 settled at Rs184,957/mt del India consumer, down by Rs4,186/mt. Input cost for Zamak declined as primary producers of Special High Grade zinc dropped their prices on March 5. Prices were reduced by Rs2,000/mt to Rs171,000/mt from the last week of February. Yet, buyers refrained from trades as demand from end-use consumers remained low. The Davis Index for Zamak #5 was down by Rs4,186/mt and settled at Rs187,957/mt.
Traders state zinc scrap prices could decline further in the next few weeks amid negative market sentiments caused by the global outbreak of Covid-19 and a fall in Brent crude oil prices to $31.02 per barrel. LME zinc prices also have been on a downtrend, affecting demand negatively.
($1 = Rs74.14)