Prices for US zinc scrap rose by 1-3¢/lb on Thursday amid a surging LME and firm domestic and export zinc scrap demand.
The weekly Davis Index for new zinc diecast compensated for last week’s decline and increased by 3.7¢/lb to 79.7¢/lb delivered US consumer. In the Midwest, some scrap dealers reportedly purchased the material for as much as 82¢/lb delivered, as demand for the grade rose this week in the domestic and export markets.
Zinc exports rebounded this week with a strong showing in the Chinese market, potentially heralding an increase in non-ferrous exports. Domestic volumes and prices are expected to benefit from this trend, with market participants anticipating upward pressure on prices. Some dealers also attributed the revival in zinc scrap demand to the US construction boom and to escalating consumption habits in the economy.
The index for zinc galvanizers bottom dross also increased by 1.7¢/lb to 75¢/lb delivered US consumer, while zinc galvanizers top dross inched up by 0.3¢/lb to 71.1¢/lb delivered.
Special high-grade zinc premiums, which were flat through most of July at 8.5¢/lb, finally moved up, albeit slightly, as LME zinc prices rose for a second consecutive month. The Davis Index for SHG zinc premium climbed by 0.3¢/lb to 8.8¢/lb under the three-month LME Zinc contract.
LME zinc, which briefly trended down last week, began climbing with the three-month official LME Zinc contract closing Thursday at $2,488.50/mt, increasing by $106.50/mt from $2,382/mt on August 13.