US zinc premiums flat amid oversupply

US special-high-grade zinc spot premiums were flat again this past week despite reports from buyers that the domestic market is oversupplied due to waning steel demand.

"There’s plenty of zinc, but the premium hasn’t fallen yet. I’ve gotten calls offering more zinc, but I’m not interested because I have long-term contracts," one buyer said. "The premium is flat because there are a lot of sellers – more than I’ve seen in a while," a second buyer said. Metal Bulletin sister publication AMM’s assessment of special-high-grade zinc premiums has remained at 8 to 9 cents per lb since March 19. Market participants cited low steel production as a key factor contributing to oversupply in the special-high-grade spot market. US steel...

Published

This article was first published by AMM

April 20, 2015

02:23 GMT

New York