GLOBAL ZINC & LEAD WRAP: Zinc premiums hold; US lead supply shortage continues

Zinc premiums were flat across Asia, Europe and the United States in the week to Tuesday February 9, while the ongoing supply tightness for lead in the US has allowed those who have material available to "name their price."

Widening arbitrage loss and low demand due to Chinese New Year keeps Shanghai, Southeast Asia zinc premiums flat. On-warrant inventory in Singapore and Port Klang, Malaysia down 11% and 20% since start of February due to stockpiling activity. Lead supply tightness in US could mean increased premium in coming weeks. No material available in US LME warehouses. Shanghai zinc appetite low
Spot demand for zinc has been minimal in Shanghai with the arbitrage loss widening this week. Importers stood to make a loss of $82.35 per tonne of zinc ingot brought into China as of February 8, according to Fastmarkets calculations. The loss was wider than $42.46 tonne a week ago.
Fastmarkets assessed the zinc SHG min 99.995% ingot premium, cif Shanghai at $80-100 per tonne on Tuesday, flat from a week ago. Some duty-free units were offered at $120 with no takers.

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