Zinc scrap prices in the US rose across most grades on Thursday in response to this week’s buoyant LME Zinc market.
After more than a month of declines, the LME Zinc market began rising last week, moving up by $60/mt to $2,433.50/mt on Oct 9 and reaching $2,456/mt three days later, before once again sliding. The three-month official LME Zinc contract closed Thursday at $2,413.50/mt, increasing by $40.50/mt from $2,373/mt on Oct 8.
The weekly Davis Index for new zinc diecast increased by 1.7¢/lb to 75.5¢/lb delivered US consumer. Supply and demand for the grade remained in balance, with market participants attributing the higher prices to surging LME Zinc tags.
The LME market also influenced the galvanizers top dross index to rise by 5.2¢/lb to 74.7¢/lb delivered US consumer, but galvanizers bottom dross ticked down by 1.4¢/lb to 71.9¢/lb delivered on Thursday.
The index for special high-grade zinc premium was flat at 8.5¢/lb under the three-month LME Zinc contract, despite greater supply giving the LME market a bump. Market participants expect premiums to move up, especially, in the European market where demand for zinc is outpacing supply.
The LME surge has resulted in higher zinc scrap prices across most grades, even though supply and demand are balanced. Very small movements are expected in the US zinc scrap market over the next few weeks, as the market has adopted a wait-and-see approach with the US presidential election around the corner and COVID-19 cases climbing across the country again.