Business is extremely slow in the zinc alloy industry as the normal summer lull takes full effect.

Most alloy producers said premiums were steady, although the numbers they reported indicated a slight softening.

Premiums for alloy Nos. 3 and 7 were reported at 11 to 11.5 cents a pound, about half a cent lower than a month or two ago, although one alloyer reported premiums of 11.5 to 12 cents a pound. Alloy No. 5 was said to be in the 12- to 12.5-cent range, with No. 2 a little higher at 13 to 14 cents a pound.

Alloy producers said that the summer slowdown in the automotive die-casting market was the main reason for the slow business.

The summer generally was good for the building and construction market, but much of that business had now been completed, sources said, and in any case it had been offset by the decline in automotive demand.

"It's a natural seasonal cycle. I expect to see orders pick up in August," one alloy producer said.

Premiums for special high grade zinc were around 4.5 to 5 cents a pound, consumers said.