Delivery of close to 20,000 tonnes of zinc onto the London Metal Exchange has eased the tightness in the cash/three-month spread, boosting Southeast Asian premiums in the week ended Tuesday December 18 while European and Chinese premiums continued to stay under pressure; lead premiums were flat across various markets on little spot interest.
China's zinc premium fell with deals for 2019 long-term contracts heard lower year on year.Taiwan zinc premium dipped but lead was flat with contractual supplies signed in line with spot premiums. Southeast Asian zinc premiums up amid easing LME backwardation structure. Lower spot interest ahead of holidays have weighed on European zinc premiums this week. LME backwardation, high import loss pressure cif Shanghai zinc premium down Fastmarkets' cif Shanghai zinc premium fell to $140-150 per tonne on Tuesday December 18 owing to the persistent London Metal Exchange cash/three-month backwardation and high import loss. The premium for zinc ingots in bonded-warehouses also fell $10 week on week to $160-170 per tonne on Tuesday. Destocking pressure among stockholders amid a persistent backwardation in the cash/three-month spread at the year-end has increased, leading to lower offers for zinc premiums cif Shanghai. Offers were heard at $130-135 per tonne, but a close import...