GLOBAL ZINC & LEAD WRAP: Chinese zinc premiums at 4-yr high after arb window swings wide open

By Archie Hunter / September 05, 2018 / www.metalbulletin.com / Article Link

Zinc premiums shot up to four-year highs in China in the week ended Tuesday September 4 after a large import arbitrage encouraged deals at premiums up to and above $200 per tonne.

Elsewhere, zinc and lead ingot physical markets were unchanged.  Premiums hit a four-year high basis cif Shanghai  Asia, Europe, US markets were unchanged for zinc and lead premiums  Market readying for annual contract discussions Chinese zinc premiums soar Zinc ingot premiums have shot up in Shanghai with the arbitrage swinging to its highest in a year. Metal Bulletin assessed zinc premiums cif Shanghai at $180-200 per tonne on Tuesday, the highest since December 2013. Meanwhile, bonded-warehouse material traded at premiums of $190-210 per tonne, also a four-year high. Sellers, who have been sitting on stocks and rolling carries through heavy backwardations for much of the year, were able to charge higher premiums this week due to the import arbitrage, which swung open on Thursday August 30. On Friday August 31 and Monday September 3, buyers could make over $200 per tonne of profits by locking in an arbitrage and importing zinc ingots...

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