European zinc premiums dropped into a wider range, which reflects a retreat by traders from physical positions, while Asian markets held steady in quiet Lunar New Year holiday trading.
European zinc market splits, some stockholders offload tonnes. Backwardation comes in but some offers for units in Rotterdam $10 lower. Asian markets quiet for Lunar New Year holidays US premiums unchanged but freight issues loom largeThe US zinc premium was flat at 8.25-9.25 cents per lb on Tuesday February 20 but market participants agree that high logistics costs - demand for freight is high, a reflection of the improving US economy - are a persistent problem."Trucking is a major concern. Many delivery appointments had to be adjusted - especially out of Canada," a US-based consumer said. In inventories, LME zinc stock levels at the US port of New Orleans fell a further 10,000 tonnes to 145,250 tonnes over the past week. On-warrant stocks remain at 83,000 tonnes.Premiums for SHG zinc ingots fell in Europe after traders offered out tonnes amid slack demand from end-users.The market has become split, with...