The prices for US zinc scrap declined amid steel falls in LME Zinc prices during the week.
The LME Zinc market has seen steep drops since Jan 25 and slipped 2pc over the previous day’s close on Thursday. Industry sources also attribute the steep fall to the rise in inventory levels, with zinc stocks at LME warehouses rising to their highest level since June 2017. As a result, the three-month official LME Zinc contract closed on Thursday at $2,570/mt down by $261.50/mt from $$2,731.50/mt on Jan 21.
Galvanizer grades declined this week with the weekly Davis Index for zinc galvanizers bottom dross dropping by 3.8¢/lb to 69.6¢/lb delivered US consumer. Zinc galvanizers top dross fell by 3¢/lb to 67.5¢/lb delivered.
The significant declines in the LME Zinc market have affected galvanizer grades the most and with zinc inventories rising across the world, prices for these grades are likely to decline further.
The weekly Davis Index for new zinc diecast also inched down by 0.9¢/lb to 77.8¢/lb delivered US consumer, though some Midwest dealers have heard of this grade trading at around 79¢/lb due to the auto sector’s strength. Special high-grade zinc premiums remained at 8¢/lb under the three-month LME Zinc contract but some deals were heard at a slightly higher premiums this week to factor in increasing freight costs.