The prices for US zinc scrap ticked up for some grades amid robust LME zinc prices and better demand.
The weekly Davis Index for new zinc diecast rose again by a penny to 78¢/lb delivered US consumer on Thursday. The index for zinc galvanizers bottom dross also increased by 0.1¢/lb to 73.1¢/lb delivered and increased for zinc galvanizers top dross by 0.2¢/lb to 70¢/lb delivered.
LME zinc continued its strong run seen since early July, which also contributed to the rising prices for the material. The three-month official LME zinc contract closed Thursday at $2,198/mt up by $53/mt from $2,145/mt on July 9, with market participants expecting it to trend up towards $2,200/mt.
The index for special high-grade zinc premium, held at 8.5¢/lb delivered, under the three-month LME contract as primary zinc supply concerns remained due to a slowdown in delivery and interruption in concentrate production at Teck Resources’ Red Dog mine.
However, market participants expect the zinc market to continue its buoyant run spurred by improving economic conditions. Manufacturing in the US improved in June—according to the latest data from the Federal Reserve—with automotive vehicle and parts manufacturing jumping by 105pc last month compared with May. The report however pointed out that automotive manufacturing remained 25pc below February levels. All other factory output grew by 3.9pc in June.