Prices for US zinc scrap rose for some grades on Thursday after a strong LME Zinc market closed above the $2,500/mt mark. 

 

The LME Zinc market continued to climb this week with the three-month official LME Zinc contract closing on Thursday at $2,557/mt up by $143.50/mt from $2,413.50/mt on Oct 15 amid optimism over the economic stimulus talks in the US.

 

The weekly Davis Index for new zinc diecast trended sideways, falling slightly by 0.3¢/lb to 75.2¢/lb delivered US consumer as supply and demand maintained equilibrium. 

 

Prices for bottom dross increased as demand from steel industries, that are ramping up their production capacities this quarter, remained strong. The high LME prices also aided galvanizer rates this week. The index for galvanizers bottom dross went up by 4.8¢/lb to 76.7¢/lb delivered US consumer, though galvanizers top dross remained rangebound, falling by 0.6¢/lb to 74.1¢/lb delivered on Thursday. 

 

The index for special high-grade zinc premium also inched up due to the stronger LME zinc market, rising by 0.1¢/lb to 8.6¢/lb under the three-month LME Zinc contract. Market participants expect premiums to continue moving up as demand for zinc grows steadily, as forecasted by the latest International Lead and Zinc Study Group (ILZSG) data.

 

According to the ILZSG, global demand for zinc is likely to increase by 4.2pc to 13.52mn mt in 2021, aided by rising consumption trends in China, a 6.5pc recovery in European demand and stronger consumption trends in the US, Australia, India, Korea, and Taiwan.

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