GLOBAL ZINC & LEAD WRAP: Shanghai zinc premiums down as arb loss deepens; Fastmarkets discontinues European lead premiums

February 14, 2019 / www.metalbulletin.com / Article Link

Zinc premiums remained unchanged across all markets this week, apart from Shanghai and Italy, despite more relaxed three-month spreads and weaker zinc prices, while lead premiums stayed flat everywhere on low spot trading interest.

LME three-month zinc spreads now at contango after a multi-month long backwardation  Softened zinc prices have not boosted spot interest and premiums as deals continue to be settled within current range Fastmarkets has discontinued publication of European lead premiums starting this week. Chinese zinc premium down amid wider import lossShanghai zinc premium fell after the Lunar New Year holidays as negative arbitrage discouraged import interest.Fastmarkets' latest weekly price assessment for the zinc premium, on a cif Shanghai basis, fell to $135-145 per tonne on Tuesday February 12, from $145-155 per tonne. The Fastmarkets' premium for zinc bonded-warehouse ingots slid to $150-160 per tonne on Tuesday, down by $10 comparing with seven days ago. "Widened import losses and the lingering holiday mood muted buying [interest], so the premium was down with thin offers [in spot market]. We heard offers for duty-free cargoes at $150-160, but at $130-140 per tonne for...

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