Zinc premiums in Shanghai and Northern Europe were on an uptrend in the week to Tuesday May 12, driven by an open arbitrage window and increased liquidity in both markets, while the market in the United States remained subdued amid a continued slump in the country's automotive sector.
SHFE import arbitrage window opensEasing of lockdown measures boosts European liquidityUS buyers reluctant to commit to deals.
Shanghai zinc premium up
An open import arbitrage between the London and Shanghai Metal Exchanges attracted thousands of tonnes of zinc ingot into China and supported the import premium.
Fastmarkets' assessment of the
zinc special high grade (SHG), min 99.995%, ingot premium, cif Shanghai, was $80-90 per tonne on Tuesday, up from $70-85 per tonne a week earlier.
The corresponding
zinc min 99.995% ingot premium, in-whs Shanghai, rose to $90-100 per tonne on Tuesday from $80-90 per tonne one week ago.
Due to the open import arbitrage window, liquidity improved and thousands of in-warehouse Shanghai tonnages have been delivered into China over the past 2-3 weeks, sources told Fastmarkets.
Import interests were significantly supported because the import arbitrage margin reached 200 yuan ($28.16) per tonne on April 23 for...