The weekly Davis Index for US secondary zinc alloys held on Tuesday to last week’s levels, as markets remained subdued because of the Covid-19 outbreak affecting supply and demand balances in the zinc market.
The Davis Index for Zamak #3 remained at $1.155/lb and was flat for Zamak #5 at $1.170/lb. The index for Zamak #2 and Zamak #7 remained at $1.185/lb and $1.155/lb, respectively.
The indices for zinc alloys ZA#12, ZA#27, and ZA#8 also held at $1.225/lb, $1.235/lb, and $1.206/lb delivered, respectively.
Market participants expect secondary zinc alloy prices to operate within this narrow range until there is more clarity about Covid-19’s long-term impact on zinc supplies and trade. However, some producers see buyers developing interest in purchasing the material due to its low prices, which could produce a short-term uptick.
The three-month official LME zinc contract closed at $2,062/mt on Tuesday, down by $81 from $2,143/mt on Feb 18.