Spot premiums for zinc ingots dropped to seven-year lows in Europe but traded flat elsewhere despite a widening price spread backwardation and a consistent import arbitrage into China.
Meanwhile, 99.99% lead ingot premiums rose in Europe reflecting a lack of spot supply in the region. Rotterdam and Antwerp premiums dropped to lowest since February 2011 LME zinc cash/three-month price backwardation widened to $19 per tonne on Tuesday "Four-nines" lead premiums rose in Europe on supply shortage European zinc premiums slip further Premiums for special high-grade zinc ingots have dropped further in northern Europe with a widening LME price backwardation putting pressure on holders to sell in a well-supplied market. At an assessed range of $115-125 per tonne duty-paid, fca in both Rotterdam and Antwerp, zinc ingot premiums are being offered at the lowest levels in seven years, according to Metal Bulletin's assessment on Tuesday June 5. A backwardation in the LME's cash/three-month zinc price spread widened to $19 per tonne on Tuesday June 5 from $0.25 per tonne on Tuesday May 29. "With the backwardation, premiums could drop even further,"...