US zinc secondary alloys prices increased by 2-4¢/lb on Tuesday amid a strong LME Zinc market.
The official LME zinc cash offers closed Tuesday at $1.1272 up from $1.1013/lb on Oct 13, while the official three-month LME zinc contract rose by $58/mt from last week, closing Tuesday at $2,504.50/mt from $2,446.50/mt on Oct 13.
Ongoing talks over the economic stimulus package and hopes about this legislation being passed soon have lifted prices in the LME zinc market. The optimism over zinc alloys prices remaining firm on businesses, especially the auto industry, returning to full-fledged production, has buoyed prices further this week.
The weekly Davis Indexes for Zamak #2 and Zamak #3 rose by 3.4¢/lb to $1.355/lb delivered US consumer, and $1.325/lb delivered, respectively. Zamak #5 increased by 2.9¢/lb to $1.337/lb delivered while Zamak #7 climbed by 3.4¢/lb to $1.325/lb delivered on Tuesday.
With respect to zinc alloys, the Davis Index for ZA 12 and ZA 8 moved up by 3.4¢/lb to $1.395/lb delivered US consumer and $1.375/lb delivered, respectively, while ZA 27 climbed the most of all grades, increasing by 4.4¢/lb to $1.415/lb delivered on Tuesday.
According to a Midwest zinc alloys producer, the market is expected to remain volatile at least till the end of the US presidential elections in early November. The market will contract or expand thereafter, depending on who wins the elections.
Rising COVID-19 infections as winter sets in and the potential of a second round of lockdowns across Europe owing to those infections are also likely to keep the markets volatile for the time being.