European zinc premiums drop sharply
Shanghai zinc market flat
South and East Asia lead markets unchanged with little buying
European zinc premiums drop to 8 ½ year lows as backwardation bites
Premiums for special high grade (SHG) zinc ingots in northern Europe fell to eight-and-a-half-year lows, after forward spreads switched again to backwardation and sellers were faced with slack spot demand.
Fastmarkets’ SHG zinc premium FCA Antwerp dropped to $100-120 per tonne on Tuesday, from $115-125 per tonne last week.
Multiple parties from all sides of the market confirmed they had traded in the new range, which is the lowest set by Fastmarkets since October 2010.
“February has been really quiet, the demand side is weak at the moment,” a trader said.
The LME cash/three-month spread was recently trading in a $20.75 per tonne backwardation, compared with a $8 per tonne contango this time last week.
Market participants were concerned...