Northern European zinc premiums stay low
- European zinc premiums near October 2010 low
- US markets stable with lead and zinc demand healthy
- Chinese markets suffering from arbitrage window.
Zinc premiums in Northern Europe stayed flat this week on poor spot demand amid a rebound in the price of zinc and a backwardation in spreads on the London Metal Exchange.
The zinc premiums in Rotterdam
, duty-paid fca, were $100-120 per tonne on March 5. This was the lowest level seen for these premiums since October 2010.
“The backwardation is not even high now. It’s more due to lack of spot demand. Prices are rising [and] nobody is buying now,” a trader source said.
On March 6, the LME cash to three-month spread was at a $21.25 per tonne backwardation. There was only 25 tonnes of on-warrant LME zinc stock in Antwerp and 125 tonnes in Rotterdam.