A lingering LME backwardation added further downward pressure to Shanghai and Taiwan zinc premiums in the latest pricing session on Tuesday June 26.
Backwardation in LME zinc's cash/three-month spread widened to $47.25 per tonne on Wednesday. US rates were unchanged, but the logistics and freight market were characterized as nightmarish. Lead demand remains strong in Asia, particularly in China and India. Shanghai, Taiwan premiums dip further amid LME backwardation Zinc premiums in Shanghai maintained last week's downward trend following a wider forward price spreads backwardation on the London Metal Exchange. The LME zinc cash/three-month spread was at $47.25 per tonne while its cash/July was at $26.5 per tonne as of the morning of Wednesday June 27. One party is holding over 40% of LME warrants. 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 and short-sellers pressured zinc premiums because stockholders rushed to sell zinc to avoid future losses. The premium for...