A widening backwardation in London Metal Exchange forward prices subdued premium movements globally for zinc while China and Southeast Asia lead markets gain momentum due to environmental restrictions on production there.
Backwardation in LME zinc's cash/three-month spread widens to $55.50 per tonne. Indian zinc premiums rose in historical high on the high end of its range. Southeast Asian lead premiums soared to year-and-half high, supported by China's lead deficit. Zinc premiums stable in Europe as backwardation remains in place Zinc premiums for Rotterdam and Antwerp remained unchanged on Tuesday July 3 on lackluster spot trade activity amid a backwardation in LME spreads. On Tuesday, the LME three-month zinc spread was at a $55.50 per tonne backwardation, leading to a higher financing costs for stockholders. Metal Bulletin's Rotterdam duty-paid fca premium was at $115-125 per tonne on Tuesday, mirroring the premium in Antwerp also on a duty-paid fca basis, both unchanged from a week ago. Offers were seen in the low $110s while some market activity was reported in the $120s per tonne. Premiums in Italy were also flat week on...