GLOBAL ZINC & LEAD WRAP: Iranian supply cut pushes up lead premiums in India, SE Asia; zinc premiums flat after arbitrage window opens

Tight spot supply of Iranian lead ingots has pushed up premiums for major importers such as India and some Southeast Asian countries, while premiums for zinc remain stable across global markets with levels in Europe holding at a multi-year low.

  • Secondary lead premiums for India up $10 per tonne from a week ago, on supply shortage led by summer production lull and Iranian ingot shortage 
  • Certain Iranian shipments to Southeast Asian countries were delayed for almost two weeks 
  • Zinc premiums are unchanged across global markets despite an opened arbitrage window 
India secondary lead premium up $10 w-o-w, SE Asia lead premium at 11-month high
Low availability of Iranian lead ingots raised premiums for major importing countries such as India and some Southeast Asian countries, prompting buyers to search for alternative brands and lead bullions.
Premiums for secondary lead on a cif basis for India rose significantly to $50-60 per tonne, up $10 from a week ago, with offers of Iranian units reported at the top end of the range. This is the highest level in nine months.

Iran, a key lead supplier to India, is in the...

Published

Millicent Dent

Vivian Teo

Julian Luk

Hui Li

May 30, 2018

18:00 GMT

London