PITTSBURGH -- Zinc die-cast alloy premiums have firmed slightly despite unspectacular business levels as input costs continue to place pressure on producers.

"Every time the market shows a little sign of picking up it flattens out again," one major Midwest-based alloy producer said. "But premiums are up on fuel costs, higher aluminum prices and the price of special high-grade (SHG) zinc."

A second producer was a little more upbeat about market conditions, but agreed that input costs had forced premiums upward. "The market's not great, but it's not all that bad. Builders' hardware is pretty steady and electrical fittings are quite strong, although automotive has a cloud over it," he said. "Premiums for SHG are now either side of 5 cents."

Zinc traders agreed that zinc premiums were around 5 cents, although most business currently was being transacted with the steel industry rather than with alloy makers.

Market participants put premiums for alloy Nos. 3 and 7 at 11.5 cents a pound over the London Metal Exchange price, with slightly lower levels possible for nearby customers. No. 5 alloy is 12 to 12.5 cents and No. 2 is around 14 cents.

Among the foundry alloys, premiums for ZA8 are anywhere from 15 to 18 cents a pound over the LME, ZA12 is 19 to 20 cents and ZA27 is 28 to 31 cents.