Prices for secondary zinc alloys continued to climb for the second successive week following strong demand and an increase in LME Zinc prices.
Weekly LME Zinc prices increased after being rangebound through most of last week, with the official LME Zinc cash price settling Tuesday at $3,020/mt ($1.3698/lb) up by $22.50/mt from Aug 31.
The weekly Davis Index for Zamak #2 increased by 0.5¢/lb to $1.59/lb delivered US consumer. Zamak #5 was unchanged $1.57/lb delivered while both Zamak #3 and #7 rose by 0.5¢/lb to $1.56/lb delivered.
ZA 27 rose by 1.5¢/lb to $1.70/lb delivered US consumer, while ZA 8 and ZA 12 inched up by 0.5¢/lb to $1.61/lb delivered and $1.63/lb delivered, respectively.
The semiconductor chip shortage has caused some unforeseen slowdowns in this sector’s demand for zinc alloys. However, this weakness has been offset by growing orders from the electronics and consumer goods industries, as well as robust demand from the construction industry.
Producers, however, are concerned about the continued high freight rates and transportation shortages that are exacerbating the cost factor for raw materials. Still, renewed demand is expected this month with more smelters and other manufacturing units returning to full operations as summer comes to an end.