US zinc scrap prices increased on Thursday following strong demand and higher sales.
The three-month official LME zinc contract increased today to close at $2,915 up by $19.50/mt from Jun 17 as the market stabilized after steep drops last week.
The weekly Davis Index for zinc galvanizers bottom dross increased by 3¢/lb to 89.5¢/lb delivered US consumer while zinc galvanizers top dross rose by 11¢/lb to 97.9¢/lb delivered.
Demand for zinc scrap has strengthened amid strong zinc galvanizer and zinc oxide sales. Zinc scrap is a key raw material used to make zinc oxide, which is used as an additive to make products such as plastic, ceramic, rubber, and cement. The dross grades are used to galvanize steel and other metals.
New zinc diecast remains in short supply and the index for this grade increased by 7.3¢/lb to 94.8¢/lb delivered US consumer.
In the primary market, the Davis Index special high-grade (SHG) zinc premium remained unchanged at 8.5¢/lb delivered. The supply of SHG zinc remains limited, with participants finding it difficult to find this grade.