Warrant traders dealing in zinc have reported a steady uptick in the metal's warrant premium levels over July, while an easing in the metal's cash/three-month spread suggests that there are more supportive financing conditions, although market participants remain reluctant to commit to purchases.
So far in July, Fastmarkets' assessment of the zinc SHG min 99.995% warrant premium, in-whs North Europe, has climbed to $30-50 per tonne on Wednesday July 24 from $20-30 per tonne on July 3.Over the same period, the London Metal Exchange's on-warrant zinc inventory has fallen by a little less than 40%, predominantly due to large cancelations out of LME-registered warehouses in Europe.These developments have come amid broadly stagnant LME prices for the galvanizing metal. Its three-month futures price has consolidated around $2,450 per tonne during July, a discount of nearly 17% from...