A widening backwardation in LME forward prices has caused premiums for the metal to fall in Shanghai.
Premiums for lead, meanwhile, are unchanged week on week. Backwardation in LME zinc's cash/three-month spread widens to $42 per tonne on MondayZinc premiums drop in Shanghai to 10-month low for cif, two month low for in-warehouseUS rates unchanged but could rise due to trucking shortage Backwardation blow to zinc premiums in ShanghaiA rampant backwardation in forward price spreads on the London Metal Exchange has led zinc ingot premiums lower in Shanghai.The LME zinc cash/three-month spread positions were being rolled for third-Wednesday trading.Excluding the swings in zinc spreads over the past nine months, three-month prices have not been this much lower than cash prices since the financial crisis of 2009.Backwardated spreads have prompted stockholders with units in the Shanghai bonded zone to sell tonnages at lower premiums.The premium for SHG zinc ingots in-warehouse in the Shanghai bonded zone dropped by $10 per tonne to $120-130 per tonne,...