The Shanghai zinc premium was unchanged in the week to Tuesday October 13 despite rising arbitrage opportunities, while spot interest for both European zinc ingots and secondary lead from Indian buyers bolstered respective premiums.
China's return to the market sees arbitrage opportunities emergeIndian lead market gets battery-demand boostEuropean spot demand gathers momentumUnited States lead and zinc trade dwindles in quiet marketShanghai zinc arbitrage hits 1-year high after China's Golden Week
The arbitrage gain between the Shanghai Futures Exchange and the London Metal Exchange for importing refined zinc into China reached a one-year high of 357 yuan ($52.50) per tonne on Monday October 12, after China's Golden Week holiday (October 1-8), prompting traders to lock in tonnages, but premiums have remained flat over the three working days since the week-long break.
Fastmarkets' assessment of the
zinc special high grade (SHG), min 99.995%, ingot premium, cif Shanghai was $80-90 per tonne on Tuesday, unchanged from the level before the holiday.
The corresponding
zinc min 99.995% ingot premium, in-warehouse Shanghai remained at $90-100 per tonne.
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