The Davis Index for US zinc scrap remained unchanged on Thursday in a market disrupted by reduced working hours and temporary shutdowns of scrap yards.
The weekly Davis Index for zinc galvanizers bottom dross was flat at 73¢/lb delivered US consumer on Wednesday, while the index for zinc galvanizers top dross remained unchanged at 68¢/lb delivered.
The indices for new zinc diecast and special high grade zinc premium respectively held at 62¢/lb delivered US consumer and 8.5¢/lb delivered above the official three-month LME zinc contract.
Weak demand and tight supply have affected the domestic zinc scrap market, as customers and suppliers work at reduced capacities or have been temporarily shut to contain the pandemic. US automotive companies, key customers in the zinc market, have extended shutdowns, with most plants targeting the end of the month or the beginning of May to reopen. Moreover, scrap yards are either operating on reduced hours or have suspended operations, which have, in turn, diminished zinc scrap collection.
A surge in LME zinc last week has not impacted the quiet market. The official three-month LME zinc contract closed Wednesday at $1,936/mt, rising by $37.5/mt from $1,898.5/mt on April 9.