Shifting London Metal Exchange zinc and lead prices have dictated premiums this past week, overriding fundamental shortages from key suppliers.
The LME zinc contract's backwardated forward curve has led to lowball offers from merchants in Italy, while a declining lead price has prompted buyers to come into the market in Southeast Asia for lead in the week to Tuesday November 26.
Italy zinc premium declines due to LME backwardation. Southeast Asia secondary lead premium up with scrap said to be in short supply US lead and zinc market stable despite supply disruptions
Persistent backwardation pressures Italian zinc premium lower
Fastmarkets assessed the
zinc SHG min 99.995% ingot premium, ddp Italy at $175-195 per tonne on Tuesday, marking the first dip in the premium assessment since July.
The
zinc SHG min 99.995% ingot premium, dp Italy held at $140-150 per tonne on Tuesday, unchanged week on week.
Market participants are reluctant to hold large stocks of physical zinc through what is a $25 per...