US zinc scrap prices increased by 1-2¢/lb on Thursday on robust demand and high LME Zinc prices.
The three-month official LME zinc contract increased by $28.50/mt to close at $2,946.50/mt today, compared to $2,918/mt on Apr 29 as a bullish economy and a softening dollar drove prices upwards.
The weekly Davis Index for zinc galvanizers bottom dross rose by 2¢/lb to 84¢/lb delivered US consumer while zinc galvanizers top dross increased by 1.5¢/lb to 80.5¢/lb delivered.
New zinc diecast increased by 2.5¢/lb to 88.5¢/lb delivered US consumer as supply tightened for the material while the Davis Index special high-grade zinc premium remained unchanged at 8.1¢/lb delivered on balanced supply and demand.
Offers for new zinc diecast have increased to around 89¢/lb amid limited availability and strong demand from the construction sector for this grade, which has also absorbed the weakening orders from the automotive sector. The overall increase in zinc prices over the past two weeks is likely to improve scrap flows. Sellers may explore the possibility of offloading some more material to take advantage of the high prices, especially for the dross grades.