US zinc secondary alloy prices inched up for some grades and were unchanged for others on Tuesday, despite the LME zinc uptrend.
LME zinc continued rising on positive global cues for the metal, especially from China. The official LME zinc cash offers closed Tuesday at $1.1167/lb, climbing from $1.1106/lb on August 18, while the official three-month LME zinc contract rose by $21/mt to close at $2,490/mt on Tuesday from $2,469/mt on August 18.
The weekly Davis Index moved up slightly for most Zamak grades. The index for Zamak #2, however, was flat at $1.33/lb delivered US consumer on Tuesday. Zamak #5 rose by 0.5¢/lb to $1.32/lb delivered, while Zamak #3 climbed by 0.7¢/lb to $1.307/lb delivered, and Zamak #7 rose by 0.4¢/lb to $1.304/lb delivered on Tuesday.
The indexes for zinc alloys remained unchanged, with the Davis Index for ZA 8 holding at $1.35/lb delivered US consumer, ZA 12 flat at $1.37/lb delivered, and ZA 27 remaining at $1.39/lb delivered.
Demand for zinc alloys has stabilized, as adequate supply ensures orders are met and prices move within a narrow range. Zinc alloy producers believe demand will endure for these products because the US automotive industry is ramping up activities to pre-pandemic levels. However, many US states still don’t have COVID-19 under control, and with a second wave of shutdowns a distinct possibility, many producers are on alert.