US zinc secondary alloys prices increased by more than 2¢/lb on Tuesday amid a rising LME Zinc market continuing a surge that began more than a month ago.
The official LME zinc cash offers closed Tuesday at $ 1.2081/lb up from $1.1873/lb on Nov 10, while the official three-month LME zinc contract rose by $40/mt from last week, closing Tuesday at $2,674.50/mt from $2,634.50/mt on Nov 10.
The outcome of the US elections has had little effect on the zinc alloys market. Demand remains strong and supply is adequate. The surge in the LME market, however, and other macroeconomic factors have spiked prices and in turn, “spooked” consumers from placing further orders for the winter months according to market participants. In fact, a Midwest producer said that the business was in for a “long, hard winter,” unless there was more clarity on prices soon.
The weekly Davis Indexes for all Zamak grades rose by 2.2¢/lb. Zamak #2, and Zamak #5 rose to $1.434/lb delivered US consumer, and $1.419/lb delivered, respectively. The indexes for both, Zamak #3 and Zamak #7 moved up to $1.404/lb delivered on Tuesday.
The index for all zinc alloys grades also rose by 2.2¢/lb with ZA 8, ZA12, and ZA 27 climbing to $1.454/lb delivered US consumer, $1.474/lb delivered, and $1.494/lb delivered, respectively.
The rising number of COVID-19 cases, especially in the colder regions of the country, remains a concern for the industry despite strong macroeconomic factors pointing to the manufacturing sector remaining robust through the end of this year.