GLOBAL ZINC & LEAD WRAP: Wider LME backwardation deters zinc spot trading; Taiwan lead premium falls

November 22, 2018 / www.metalbulletin.com / Article Link

Zinc premiums narrowed in Southeast Asia but were stable elsewhere in the week ended Tuesday November 20 after zinc forward price spreads became the most widely backwardated since at least 2004.

Lead premiums dropped in Taiwan, with lower offers moving levels down.  Zinc cash/three-month price spread backwardation soars to $98 per tonne  Taiwan lead premium falls pressed by increase in Indian cargoes  US zinc and lead premium flat ahead of ongoing 2019 annual contract talks  Southeast Asian zinc premiums narrowed amid wider LME backwardation Southeast Asian premiums narrow on widening backwardation Special high grade (SHG) zinc premiums in Southeast Asia narrowed this week, attributed to the widening backwardation bearing down on the market. The London Metal Exchange cash/three-month zinc spread widened to $98 per tonne on Tuesday 20, the biggest backwardation for the spread on Fastmarkets records stretching back to 2004. The backwardation is up from $64.75 on November 13. Fastmarkets' zinc premiums fca Singapore and fca Malaysia were both assessed at $145-150 per tonne on Tuesday, from $140-155 per tonne the week before. The in-warehouse premiums in Singapore and Malaysia similarly moved up on the...

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