US zinc secondary alloys prices increased by 7-8¢/lb during the week on higher buying activity and rising LME Zinc prices.
The official LME Zinc cash offers closed Tuesday at $1.2787/lb up from $1.2077/lb last week while the official three-month LME Zinc contract surged by $154.50/mt from last week to $2,837.50/mt on Tuesday.
The weekly Davis Index for Zamak #2 increased by 7¢/lb to $1.495/lb delivered US consumer. The index for Zamak #5 grew by 7.5¢/lb to $1.48/lb delivered, while both Zamak #3 and Zamak #7 rose by 7¢/lb to $1.465/lb delivered.
The weekly index for ZA 8 and ZA 12 increased by 7¢/lb to $1.515/lb delivered and $1.535/lb delivered US consumer, respectively. The index for ZA 27 surged by 8¢/lb to $1.565/lb delivered.
Buying activity has increased in the past week spurring zinc alloys prices higher, according to some producers. However, others believe that most of the purchases were led by speculators. Despite pockets of activity, forward buying from serious buyers is still lacking as they are waiting for a market correction before they resume placing orders for large volumes, participants said.