US zinc secondary alloy prices increased by more than 3¢/lb on Tuesday amid a rising LME Zinc market and strong demand for the material.
The official LME zinc cash offers closed Tuesday at $1.1873/lb up from $1.1587/lb on Nov 3, while the official three-month LME zinc contract rose by $65/mt from last week, closing Tuesday at $2,634.50/mt from $2,569.50/mt on Nov 3.
The outcome, or the lack of it, in the US presidential elections, has not affected the zinc alloys market yet as predicted by market participants earlier. Market fundamentals remain strong and despite current volatility in the LME market, the zinc alloys business has increased steadily amid higher demand and consumption of products in the manufacturing sector, which rebounded in October.
Better domestic demand and more production returning to the US from countries like China have resulted in improved prices across all zinc alloys grades.
The weekly Davis Indexes for Zamak #2 and Zamak #3 rose by 3.7¢/lb to $1.412/lb delivered US consumer, and $1.382/lb delivered, respectively. Zamak #5 inched up a little more, climbing 3.8¢/lb to $1.397/lb delivered. The index for Zamak #7 also moved up by 3.7¢/lb to $1.382/lb delivered on Tuesday.
The index for all zinc alloys grades rose by 3.7¢/lb with ZA 8, ZA12, and ZA 27 climbing to $1.432/lb delivered US consumer, $1.452/lb delivered, and $1.472/lb delivered, respectively.
As the market moves towards the end of the year, producers remained concerned about the rising number of COVID-19 cases, which have already resulted in partial shutdowns across the UK and Europe. Rising demand for galvanized steel, however, remains a sweet spot, with producers anticipating sustained demand from this sector through December.