The import arbitrage window opened for zinc metal into China in the week ended Tuesday April 28 for the first time in over a year, prompting a flurry of activity, while a struggling US auto industry and poor end-user demand in Europe for zinc left premiums flat and caused an influx of material on exchange.
Thousands of tonnes of zinc traded this week following the opening of the import arbitrage. US zinc demand continues to be affected by automaker closures and steel cutbacks, while sister metal lead premiums were unchanged. LME lead stocks in Europe and Asia increased amid slack physical demand. European demand remains fragile. Zinc arbitrage window opensThe...