Zinc premiums slip as slow sales cause stock-build in Europe

Premiums for zinc ingots have slipped in Europe as slow sales on the continent and an inactive export trade have encouraged sellers to lower their offers for large clips of material, market sources told Metal Bulletin this week.

With zinc production running at high levels and demand proving sluggish, a significant overhang in zinc inventories is starting to develop in private storage in Europe, sources said.
Metal Bulletin’s duty-paid FCA Rotterdam premium was assessed at $135-165 per tonne on Wednesday March 18, down $5 from the previous assessment, as traders and producers reported selling at lower numbers to trim their positions after seeing inventories build over the first quarter.
SHG (special-high-grade) jumbos continued to trade at high levels, with producers reporting recent sales at about $170-175 per tonne, as constraints on the supply side and steady demand helped to keep premiums propped up.

Higher premiums can sometimes be achieved on small lots or in sales to customers in locations such as the UK or southern Europe that are less...


Mark Burton

March 19, 2015

12:45 GMT