US zinc scrap prices moved down on Thursday following a decrease in LME Zinc prices this week.
The three-month official LME zinc contract fell today to close at $2,895.50/mt down by $105.50/mt from Jun 10 in tandem with the rest of the LME Base Metals complex that has declined over the past few days on concerns about China’s release of zinc, copper, and aluminum reserves to curb the high prices in that market.
The weekly Davis Index for zinc galvanizers bottom dross dropped by 2.8¢/lb to 86.5¢/lb delivered US consumer while zinc galvanizers top dross declined by 2.4¢/lb to 86.8¢/lb delivered. New zinc diecast, which remains in short supply, declined by 2¢/lb to 87.5¢/lb delivered US consumer. Demand for zinc scrap remains stable amid healthy scrap flows. Still, buyers, wary of the volatility in pricing over the past two weeks, are gradually retreating until there is more stability.
In the primary market, the Davis Index special high-grade (SHG) zinc premium remained unchanged at 8.5¢/lb delivered. SHG zinc remains in tight supply globally. Sellers are hedging their positions to lock in the high prices of zinc which have risen by over 70pc from their 2020 lows to increase their profitability. The latest of such deals was made between New Century Zinc and Macquarie Bank this week.