GLOBAL ZINC & LEAD WRAP: China zinc premiums down; lead premiums mostly flat

Zinc premiums were down in China on weak demand and largely flat across the rest of Asia amid a closed arbitrage window, while lead buying interest increased premiums in India and Southeast Asia and high London Metal Exchange prices discouraged imports.

  • Weaker demand under environmental inspections decreased zinc premiums in China, while supply tightness increased premiums in Europe 
  • Lead premiums in India and Southeast Asia are flat while high LME prices discourage imports 
  • Both markets are dominated by 2018 contract negotiations amid freight-cost hikes 
Zinc premiums down in China, up slightly in Europe and remain steady in Southeast Asia and US
In China, zinc premiums fell this week amid weak demand and a closed import window, import losses were recorded at $60.34 per tonne on Tuesday December 5.
Shanghai premiums in warehouse and cif basis Shanghai premiums stood at $140-150 per tonne and $130-140 per tonne, respectively, both down $10 per tonne from last week.
Metal Bulletin assessed Shanghai-bonded zinc stocks at around 85,000-90,000 tonnes at the end of November, down 45.3% year on year.

A slowdown in Chinese domestic demand amid cross-country environmental...

Published

Echo Ma

Millicent Dent

Archie Hunter

Vivian Teo

December 06, 2017

09:20 GMT

Shanghai, London, Chicago