Zinc and lead premiums were largely unchanged this week, with market attention on forward spreads, which have turned once again to backwardation.
Zinc premiums remain unchanged globallySpreads return to backwardation, could pressure premiumsLead rates unchanged Premiums for Special High Grade zinc ingots remain unchanged in Asia, Europe and the United States this week, but the market is keeping a close eye on developments in forward spreads as well as a potential Shanghai import arbitrage. The London Metal Exchange's cash/three month spread traded at $22 backwardation on March 28 and was in a $12.50 backwardation on April 3, having been in a $2 contango as recently as March 16. "The 'back' is back, so it's tough trading conditions," a zinc trader said. Zinc prices are down 0.1% since last Tuesday's LME close. The fact that prices have plateaued after dramatically falling in February and early March has triggered some spot buying. Premiums for zinc ingots in Europe remain at $125-135 per...