Scrap and ingot prices fell by 1-4pc in India on Monday in line with LME zinc contract which fell by 6pc in a week. In terms of spreads, domestic market for major scrap grades strengthened compared to the preceding week as fall in LME zinc was steeper than the decline in domestic scrap and ingot values.
The weekly Davis Index for zinc galvanizer’s dross in Mumbai fell by Rs3,334/mt ($45/mt) and settled at Rs158,333/mt ex-works producers on Monday. Most trades settled on a lower level compared to previous week on the back of LME zinc.
The official three-month LME zinc contract closed at $2,379.5/mt, down by $150/mt from the prior week.
Galvanisers said dross demand has been stable amid a strong market for tyres and paints. Both these segments are heavy consumers of zinc oxide. Zinc dross is a basic raw material used in production of zinc oxide. Major paint companies are expecting demand to rise as festive season advances and auto sector is also improving.
The weekly Davis Index for zinc galvanizer’s dross in Delhi settled at Rs162,875/mt ex-works producer Monday. Prices may move further down if LME continues its downtrend.
The market in Mumbai and Delhi strengthened in terms of spreads for zinc galvanizer’s dross. Spreads for Mumbai narrowed by almost 3.41pc and in Delhi by 4.55pc compared to the week prior.
The weekly Davis Index for secondary zinc ingot in Delhi fell by Rs1,750/mt and settled at Rs166,750/mt del consumer, Monday. Brass manufacturers who consume remelted ingots said that demand for brass products is not too strong and they may cut down consumption of zinc ingots if the current scenario extends. The weekly index for secondary zinc ingots in Mumbai dipped by Rs2,100/mt and settled at Rs164,500/mt del consumer from Monday last week.
Domestic market for secondary zinc ingot strengthened as spreads in both Mumbai and Delhi widened in the week by approximately 4pc each. Prices fell by 1-2pc while LME slipped by 6pc resulting in spreads to widen in a week.
The weekly Davis Index for new zinc die-cast settled at $1,897/mt cfr India port, down by $91/mt on Monday. The market for new zinc diecast strengthened as spreads contracted by 1.15pc from the prior week.
The weekly Davis Index for Zamak #3 settled at Rs212,000/mt del India consumer down by Rs3,917/mt. The index for Zamak #5 also settled lower by Rs3,917/mt to Rs215,000/mt del India consumer from the week prior. The market for zinc alloys strengthened as spreads for Zamak #3 and Zamak #5 widened by 4pc from the prior-week despite a fall in domestic prices by 2pc.
Prices of Special High Grade zinc which is used to manufacturer zinc alloys were revised to Rs200,000-202,000/mt, down by approximately Rs7,000-8,000/mt from the week prior.