The sharp fall in London Metal Exchange three-month lead price has put upward pressure on the US lead premium. Stock liquidation and weak buying saw the Italian delivered zinc premium decline, while the Shanghai zinc market held firm.
US zinc premium flat amid "deathly quiet" in spot demand ILZSG data shows an overall deficit of 83,000 tonnes for lead in the first nine months of 2019 Weak buying appetite, low stocks see Italy delivered premium decline Higher offers, narrowing import loss piques Shanghai zinc marketFalling LME lead price pressures US lead premium
In the United States, the premium for lead 99.97% metal widened in response to a fall in the LME three-month price of the metal.
Fastmarkets assessed the lead 99.97% ingot premium, ddp Midwest US at $0.09-0.105 per lb on Tuesday, widening from the previous range of at $0.09-0.10 per lb.
The LME three-month lead price contract closed at $1,908 per tonne on Tuesday, down from the 16-month high of $2,262 per tonne set on October 29.
"Demand is good for lead," a seller said, though other market participants pointed out that the...