US zinc scrap prices remained rangebound for the second successive week amid fluctuations in LME Zinc prices and balanced supply and demand for the material in the domestic market.
The official LME Zinc three-month contract settled Thursday at $2,932.50/mt down $92.50/mt from Aug 12. LME Zinc prices have trended down since Aug 16 when they closed at $3,018/mt after touching a high of $3,025/mt last week. The fluctuations over the past week have effectively diminished spot deals as traders find it hard to hedge their deals amid the volatility.
The weekly Davis Indexes for zinc galvanizers bottom dross and zinc galvanizers top dross remained unchanged at 99¢/lb delivered US consumer and $1.02/lb delivered, respectively, on Thursday.
New zinc diecast climbed by a penny to 97.5¢/lb delivered amid LME volatility and strengthening demand. The automotive industry continues to grapple with a shortage of semiconductor chips with most carmakers expecting lower output at the end of August due to this issue. Still, the long-term outlook for the industry remains strong given the strong demand from end-consumers.
In the primary market, the Davis Index special high-grade premium remained unchanged 8.4¢/lb delivered as spot deals dried up due to the volatility in LME Zinc prices over the past week.