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...