Premiums for zinc and lead ingots were unchanged globally over a week in which exchange prices for both metals continued to fall, breaking to fresh one-year lows.
Zinc premiums remain under pressure from slack demand, backwardated spreads But LME cash/three-month backwardation narrows vs last week Lead premiums unchanged China zinc premium under pressure amid LME backwardationIn China, premiums for zinc ingots were unchanged in the week to Tuesday July 10 but backwardated forward price spreads continue to pressure rates lower.The premium for special high grade (SHG) zinc ingots in-warehouse in the Shanghai-bonded zone was flat at $110-120 per tonne on Tuesday, still its lowest since its arbitrage window opened in April. On the London Metal Exchange, the cash/three-month backwardation in zinc narrowed to $11 per tonne on Tuesday from $56 per tonne on July 3.The physical market has been quiet - no transactions were reported over the past week, with buying interest dampened by the backwardation. Offers of ingots with premiums at $90 per tonne have been heard with no bids in response, several sources confirmed with...