US zinc scrap prices rose on Thursday amid expectations of increased consumption in the steel industry and a bullish outlook on the new infrastructure bill introduced by President Biden last week.
LME Zinc prices increased this week with the three-month official LME Zinc contract closing at $2,860.50/mt on Thursday, up by $51.50/mt from Apr 1.
The weekly Davis Index for zinc galvanizer grades increased on Thursday with zinc galvanizers bottom dross rising by 3.5¢/lb to 79.5¢/lb delivered US consumer and zinc galvanizers top dross moving up by 3¢/lb to 76¢/lb delivered. New zinc diecast inched up by 0.8¢/lb to 80¢/lb on Thursday amid stable demand and adequate supply of the grade.
An expected increase in demand and consumption of zinc for coating in the steel industry has kept market sentiment buoyant amid a tight supply of steel and rising prices of steel grades like hot-rolled coil (HRC). With automotive plants in the US resuming production this week, demand from this sector is also expected to strengthen further in the near term, supporting zinc scrap prices.
The Davis Index special high-grade zinc premium held unchanged at 8¢/lb delivered as trading remained subdued in the primary market.