Shanghai zinc premiums softened over the past week on low spot interest due to import losses and a backwardation in London Metal Exchange price spreads, while lead premiums were largely unchanged across the globe, Fastmarkets heard on Wednesday February 20.
Shanghai zinc market saw transactions at a lower premium, and import losses hovered around $100 per tonne. The contango of zinc spreads in mid-February was short-lived because backwardation returned to limit spot interest in the European zinc market. Premiums stayed unchanged this week. The Southeast Asia zinc premium also stayed unchanged with low inventory in a backwardated market. Taiwan primary lead supply tightened with supply flowing into the Chinese mainland, but premiums were unchanged with no spot deals. The exchange-rate decline of the Indian rupee has made Indian lead exports more competitive while import interest was low this week. US zinc, lead premiums were flat, supported by solid demand.Sparse deals in Shanghai zinc marketThe cif Shanghai zinc premium fell to $130-140 per tonne on Tuesday February 19, from $135-145 per tonne a week earlier, with the few deals that were agreed being sealed in the range of $130-135 per...