US zinc secondary alloys prices increased slightly on Tuesday amid the US presidential elections.
The official LME zinc cash offers closed Tuesday at $1.1587/lb up from $1.1514/lb on Oct 27, while the official three-month LME zinc contract rose by $17/mt from last week, closing Tuesday at $2,569.50/mt from $2,552.50/mt on Oct 27.
Market participants are bracing for the results of the presidential elections, though most do not see the outcome impacting the market much because of its strong fundamentals.
A Midwest producer told Davis Index that the zinc alloys business is steady despite the current volatility in the LME market as more work returns from countries like China to the US shores. This trend has resulted in improved prices across all zinc alloys grades over the past month.
The weekly Davis Indexes for Zamak #2 and Zamak #3 rose by 0.7¢/lb to $1.375/lb delivered US consumer, and $1.345/lb delivered, respectively. Zamak #5 increased the least of all grades, climbing 0.6¢/lb to $1.359/lb delivered. The index for Zamak #7 also moved up by 0.7¢/lb to $1.345/lb delivered on Tuesday.
The index for all zinc alloys grades rose by 0.7¢/lb with ZA 8, ZA12, and ZA 27 moving up to $1.395/lb delivered US consumer, $1.415/lb delivered, and $1.435/lb delivered, respectively.
The market remains wary about the potential for a second round of shutdowns due to the rising number of COVID-19 cases in the US and Europe. In fact, in the latter, countries like the UK, France, and Germany have already issued lockdown restrictions to curb the spread of infections. On the other hand, rising demand for galvanized steel in China has kept zinc suppliers and producers hopeful about sustained demand until the end of the year.