Lead and zinc premiums were roughly steady across the markets in Asia, Europe and the United States in the week ended Tuesday October 23, but buying interest in Asia and Europe was limited due to the closed import arbitrage window into China and a strong backwardation on the London Metal Exchange.
Meanwhile, the US premium was expected to rise, underpinned by higher freight rates and solid demand. European zinc premium flat, but buying interest poor because a decline in LME zinc stocks fueled a strong backwardation Gap widens for European zinc annual contract discussion US zinc premium expected to be marginally higher; lead premium bolstered by freight costs Asian zinc and lead premiums flat due to lack of trades.LME zinc stock decline fuels backwardationA significant week-on-week decline in LME zinc stocks between October 16 and 23 has led to a backwardation in spreads that is suppressing interest in spot trading in Europe.On Tuesday October 23, LME on-warrant zinc stock levels dropped by almost one-fourth to 104,950 tonnes compared with a week before. Stock availability in Antwerp's sheds tumbled to only 200 tonnes from 27,450 tonnes a week earlier, with delivery queues lengthening to well over a month."[The] zinc market is quite dead," a...