US zinc scrap prices were rangebound on Thursday after some smelters shut down for maintenance during the week.
The three-month official LME zinc contract inched up by $6/mt to close at $2,940/mt compared to Jul 1 following tightness in global zinc inventories, which were down for the eighth successive week.
The weekly Davis Index for zinc galvanizers bottom dross fell by 0.3¢/lb to 92.5¢/lb delivered US consumer while zinc galvanizers top dross declined by 0.6¢/lb to 98.2¢/lb delivered.
The drop in dross prices is expected to be temporary and was attributed mainly to a historical softening of demand during the summer months. The need for these grades remains strong in galvanizing and zinc oxide markets. Sales to these industries are expected to resume once smelters return online.
New zinc diecast climbed by 0.5¢/lb to 95¢/lb delivered US consumer on Thursday, while the Davis Index special high-grade (SHG) zinc premium remained unchanged at 8.5¢/lb delivered.