US zinc scrap prices decreased by 5-6¢/lb in tandem with a drop in LME zinc prices this week.
LME zinc prices plummeted from record highs during the week with the three-month official LME zinc contract closing Thursday at $2,751/mt down by $155/mt from Feb 25. LME zinc prices had risen by more than $200/mt in February and touched a high of $2,906/mt last week, the highest price since April 2019.
High freight costs and seasonally low demand in the automotive sector has affected zinc scrap flows. However, demand from the steel and construction industries remains stable, according to market participants who attributed the decline in prices to the impact of the bond market’s volatility on the LME base metals complex.
Zinc galvanizer grades decreased by 6¢/lb during the week with the weekly Davis Index for zinc galvanizers bottom dross settling at 73.5¢/lb delivered US consumer and zinc galvanizers top dross dropping to 70.5¢/lb delivered.
The weekly Davis Index for new zinc diecast decreased by 5¢/lb to 77¢/lb delivered US consumer. In primary markets, the Davis Index special high-grade zinc premium inched down by 0.1¢/lb to 8¢/lb delivered.