GLOBAL ZINC & LEAD WRAP: Steep year-end backwardation limits zinc spot buying; lead premiums stable

Concerns over the steep cash/three-month backwardation for zinc prices on the London Metal Exchange sapped much of the buying interest in the spot market, leaving most premiums unchanged in the week to Tuesday October 30.

Zinc spot buying in Europe limited by steep LME cash/three-month backwardation, premiums stable to lower  Increasing freight costs expected to support US zinc and lead premiums in 2019  Tight supply of zinc in Southeast Asia push premiums slightly up  South Asian lead premiums trade sideways on low liquidity European zinc premiums unchanged with downside bias from backwardation Zinc premiums were stable in Northern Europe on Tuesday amid thin trading conditions, with market participants also focused more on 2019 supply contract negotiations. Both the Rotterdam special high grade fca premium and the Antwerp fca 99.995% purity premium were flat at $115-125 per tonne duty-paid on Tuesday. "Premiums haven't moved, the backwardation has not yet impacted spot levels. But little business is being done," a trader said. The backwardation in the LME cash/three-month spread has remained high at $60 per tonne from a peak of $63 per tonne a week...


Perrine Faye

Archie Hunter

Dalton Barker

Mia Aureus

October 31, 2018

08:09 GMT

London, Chicago, Singapore