CRU: U.S. Zinc Demand Strength Continues Through Summer Months

By CRU Senior Analyst Helen O’Cleary

U.S. refined demand continues to impress through the traditionally slower summer months, with market contacts reporting still-strong off-take under long-term contracts into August. We hear that many consumers continue to take the higher end of their contracted metal tonnage, with some still buying additional spot quantities. A further increase in U.S. domestic steel sheet prices in early July reflected the strength of demand. Manufacturing and construction activity remains strong despite sky-high freight rates and serious reliability issues in the sector, coupled with a tight labor market.