Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Indian domestic markets are gradually returning to normalcy. Markets for zinc scrap and zinc alloy strengthened in terms of spreads in the week ended July 26. Prices increased across zinc scrap grades as demand continues to improve in a gradual manner while primary zinc alloy prices fell, Monday, mirroring the trend in LME zinc.


The official three-month LME zinc contract on Friday settled at $2,961/mt, down $19/mt or 0.64pc. During the week, primary prices down fell resulting in Zamak manufacturers’ lowering offers even when the market was in a recovery mode.


The weekly Davis Index for zinc galvanizer’s dross, Monday, settled at Rs193,800/mt ($2,602/mt) ex-works Delhi producer, up by Rs133/mt on higher offers as demand and market sentiment improved. The weekly Davis Index for zinc galvanizer’s dross in Mumbai settled at Rs205,000/mt ex-works producer, up by Rs2,683/mt driven by an increase in demand from oxide and dross manufacturers based in central and western India.


Major tire makers in India have plans to increase production locally to meet the sturdy demand from auto manufacturers in the coming months. This bodes well for zinc oxides and zinc dross grades.


Secondary zinc ingot prices in Mumbai and Delhi increased this week. Consumption of ingots by brass and oxide manufacturers has always been low and will take time to pick up in the coming days. The weekly Davis Index for secondary lead ingot in Mumbai settled at Rs204,817/mt ex-works consumer, up by Rs2,717/mt and the index for Delhi settled at Rs197,483/mt ex-works consumer, up by Rs1,893/mt from a week ago.


Post easing of the lockdown, Mumbai markets have witnessed better recovery compared to Delhi as production units have now opened in Mumbai and the neighbouring region. Also, Mumbai is facing severe supply chain issues as transportation to slow due to heavy rains during the past weeks.


The Davis Index for Zamak #3, Monday, settled at Rs254,608/mt del India consumer, down by Rs682/mt and the index for Zamak #5 settled at Rs257,275/mt del India consumer, down by Rs965/mt from a week prior.


Zamak manufacturers shared that demand from the auto sector is expected to rise in August and should support prices. Exports have also been slow in the past months with global auto demand suffering in June. As domestic demand increases, demand for primary zinc will also go up. Markets for Zamak #3 and #5 strengthened in terms of spread which widened from a week ago as prices remained firm in anticipation of improved demand from the auto sector.


The Davis Index for new zinc diecast imports settled at $2,319/mt cfr India port, up by $10/mt from a week ago.


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