Steel Products Prices North America
October 15, 2020
CRU: U.S. Zinc Demand Stable This Month
Written by Helen O’Cleary
By CRU Senior Analyst Helen O’Cleary
The U.S. economy saw an impressive overall rebound through Q3, following severe Covid-19 disruption in Q2. We estimate that U.S. industrial production contracted 7.5% y/y in Q3, following a decline of 14.4% y/y in Q2. However, the momentum of the recovery is slowing as fiscal stimulus and the effects of pent-up demand wane. We currently do not expect Congress to agree on another stimulus package before November’s election, and our base case is for additional stimulus in 2021. In terms of the zinc market, we continue to hear that U.S. demand is gradually improving, with consumers generally taking contract volumes and starting to plan for 2021, although flexibility is likely to be key in next year’s contracts given the high level of uncertainty in the market.
