US zinc scrap prices remained unchanged on Monday as market fundamentals softened amid concerns over global oversupply due to the coronavirus outbreak.
The Davis Index for zinc galvanizers top dross remained at 73¢/lb on Monday, while the Index for bottom dross was flat at 76¢/lb. The indices for new zinc diecast and zinc SHG premium were also unchanged at 74¢/lb and 0.09¢/lb, respectively.
Market participants expect prices to fall during the week as apprehensions over global supply for the metal grow. The demand for zinc in China—one of the largest consumers of the metal—has dwindled following the coronavirus outbreak and the extended New Year holiday. The lack of demand has resulted in a significant increase in global inventory that increased to160,597mt last week from 90,203mt in the prior week.
LME zinc has also continued to slip on supply worries. The three-month official LME zinc contract closed on Monday at $2,133/mt, down by $54/mt compared to $2,187/mt on Feb 3.